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VEHICLES FOR HIRE 2018 INTERIM APPLICATION

December 15, 2017

December 15, 2017 2017 INTERIM FILING Vehicles for Hire

Manitoba Public Insurance Page 2 of 27

Table of Contents

VEHICLES FOR HIRE APPLICATION ............................................................................ 3

VFH.1 LEGAL APPLICATION ....................................................................................... 3

VFH.2 INTRODUCTION AND OVERVIEW .................................................................... 4

VFH.2.1 Legislative Context for the Application ......................................................... 5

VFH.2.2 Principles for the Rating Model ................................................................... 6

VFH.2.3 Vehicles Eligible for Vehicles for Hire Insurance ............................................. 7

VFH.2.3.1 Discontinued ‘X Plate’ Registration Class ................................................ 9

VFH.2.4 Vehicle for Hire Rating Model ................................................................... 10

VFH.2.4.1 Service Fees .................................................................................... 11

VFH.2.5 Vehicle for Hire Basic Coverage ................................................................ 12

VFH.3 RATE SETTING FRAMEWORK ......................................................................... 13

VFH.3.1 Passenger VFH ....................................................................................... 13

VFH.3.2 Taxicab Vehicles for Hire ......................................................................... 15

VFH.3.3 Limousine Vehicles for Hire ...................................................................... 17

VFH.3.4 Accessible VFH ....................................................................................... 20

VFH.3.5 How Rates will be set in future GRAs ......................................................... 22

VFH.3.6 Vehicles for Hire 2017/18 Rates ............................................................... 22

VFH.3.7 Eligibility for Driver Safety Rating Vehicle Premium Discounts ....................... 23

VFH.3.8 Impacts Taxi/Livery Policies Outside the VFH Framework ............................. 23

VFH.4 CUSTOMER SERVICE ..................................................................................... 24

VFH.4.1 Implementation Plan ............................................................................... 24

VFH.4.2 Rating Model Enforceability ...................................................................... 25

VFH.5 FINAL APPROVAL OF VFH RATES .................................................................. 26

VFH.5.1 Refund/Collection Mechanism for Final Approved Rates ................................ 26

December 15, 2017 2018 INTERIM APPLICATION Vehicles for Hire


VEHICLES FOR HIRE APPLICATION

VFH.1 LEGAL APPLICATION

Manitoba Public Insurance (“MPI” or “the Corporation”) applies to the Manitoba Public 1

Utilities Board (“PUB” or “Board”) for interim approval of premiums charged with 2

respect to compulsory vehicles for hire insurance, in accordance with the provisions of 3

The Crown Corporations Public Review and Accountability Act and The Public Utilities 4

Board Act. 5

Bill 30, establishing The Local Vehicles for Hire Act (“the VFH Act”), received Royal 6

Assent on November 10th, 2017. The VFH Act eliminates regulation of the taxi industry 7

in Winnipeg through the Taxicab Board and transfers regulatory responsibilities for all 8

vehicles for hire to each municipality in the Province of Manitoba. The VFH Act comes 9

into force on February 28, 2018 and allows for a new class of vehicles for hire in 10

addition to the existing taxicab/livery service. 11

To offer compulsory insurance for vehicles for hire, MPI must seek and obtain the 12

Board’s approval of premium rates both for this new class of vehicles for hire, and for 13

new premium rates for the existing classes of vehicles for hire (taxicabs, limos and 14

wheelchair accessible vehicles). 15

The Corporation is requesting interim approval of the following rates for service 16

effective March 1st, 2018: 17

The premiums charged with respect to compulsory vehicles for hire Rates for 18

Service, effective March 1, 2018. 19

o Interim vehicles for hire Rates for Service are being requested for both the 20

2017/18 and 2018/19 insurance year in this application, as reflected in 21

Appendix 1 and Appendix 2 to this Application, based on rates approved in 22

PUB Orders 162/16 and 130/17 respectively. 23



Changes to eligibility for vehicle premium discounts for vehicles for hire, also as 1

reflected in Appendix 1 and Appendix 2. 2

Waiving of service fees for change of insurance for vehicles for hire 3

A mechanism for refunding/collecting any variance between interim and final 4

approved vehicles for hire Rates for Service, as determined through the 2019 5

General Rate Application (GRA) 6

7

Further, MPI proposes: 8

Other than as specified above, no change to service fees for changing coverage 9

No change to Miscellaneous permits and certificates 10

No change to driver license premiums 11

No change to fleet rebates and surcharges 12

Rate tables for Interim vehicles for hire rates for service are included as Appendix 1 13

and Appendix 2 to this Application. 14

VFH.2 INTRODUCTION AND OVERVIEW

The VFH Act introduced significant changes to the transportation service industry in 15

Manitoba, and with this interim application, MPI proposes a consistent and responsive 16

insurance framework for all vehicles for hire anticipating that a range of regulatory 17

frameworks may be adopted at the municipal level. 18

The proposed insurance framework will offer increased flexibility of insurance coverage 19

to existing taxi/livery service vehicles, as well as new vehicles for hire customers. 20

Time bands for coverage of vehicles for hire operation will allow operators to select 21

desired times of coverage, tailoring their insurance costs to meet their operating 22

needs. 23

Where possible, pricing of policies has been based on known experience, and the price 24

of future policies will incorporate claims experience to ensure that customers are 25

paying appropriate premiums. Vehicles for hire insurance policies will also be tracked 26

in a separate pool, ensuring there is no impact on the rest of Basic’s customers. 27



MPI seeks interim approval of vehicles for hire premiums, effective March 1, 2018, to 1

coincide with the VFH Act coming into force. This interim application is meant to reflect 2

the will of the Manitoba Legislature to enable the new form of commerce contemplated 3

under the Act, and to prevent the obvious harm that will result if there is no 4

appropriate insurance product available when the VFH Act comes into force. 5

MPI will seek final approval of vehicles for hire Rates for Service through its usual GRA 6

process, expected to be filed in June of 2018. Through the GRA process, MPI 7

anticipates that parties granted standing will be afforded the opportunity to fully test 8

the justness and reasonableness of the proposed Rates for Service. MPI will refund or 9

collect any variance between the Board’s interim and final determination of Rates for 10

Service a customer by customer basis. 11

MPI anticipates that this interim application and the 2019 GRA will focus substantively 12

on testing the pricing of the policies, consistent with the intent of section 25 of the 13

Crown Corporations Governance and Accountability Act. However, to provide the 14

Board and interveners a thorough understanding of MPI’s proposed pricing, this 15

application also includes details of the overall vehicles for hire framework, such as 16

impacts to vehicle registration, customer and implementation timelines. 17

VFH.2.1 Legislative Context for the Application

The VFH Act received royal assent on November 10, 2017, and will come into force on 18

February 28, 2018. 19

The VFH Act removes the references to ‘taxicab’ from The Highway Traffic Act and The 20

Drivers and Vehicles Act, and creates a new definition for a ‘vehicle for hire’. The VFH 21

Act also dissolves the Taxicab Board (which currently regulates taxicabs operating 22

within the City of Winnipeg), transfers responsibility for the regulation of vehicles for 23

hire to municipalities, and specifically requires the City of Winnipeg to establish a by-24

law to regulate the vehicles for hire industry. 25



Under the VFH Act, the new definition of ‘vehicle for hire’ – any vehicle designed for 1

10 or fewer occupants (including the driver) that is hired by a passenger for a single 2

trip, where the passenger controls the route or destination – will include existing 3

taxicabs, limousines and executive cars, as well as vehicles hired via online 4

ridesharing platforms. 5

As per reports, the City of Winnipeg intends to have a by-law in force on March 1, 6

2018 to regulate all vehicles for hire in Winnipeg, and authorize ridesharing operations 7

in the city.1 Other municipalities may also make changes to their by-laws to allow 8

ridesharing or otherwise regulate vehicles for hire. 9

VFH.2.2 Principles for the Rating Model

Transportation Network Companies (TNCs) are a relatively new business model in 10

North America, and in Canada in particular. Based on MPI’s analysis of TNC by-laws 11

and insurance rates in Canada, no industry standard has developed on insurance 12

rating models within or across jurisdictions that currently permit operation of TNCs. 13

Further, coverage and pricing varies by insurance company within and across 14

jurisdictions. 15

As at the time of this application’s preparation, British Columbia and Saskatchewan 16

had not permitted the operation of TNCs. As such, the review of existing vehicles for 17

hire frameworks did not include any public insurers comparable to MPI. 18

MPI developed and evaluated several rating models within the context of the 19

compulsory nature of Basic, and MPI’s intent to limit cross-subsidization between 20

vehicles for hire and the rest of Basic. MPI selected the rating model that best satisfied 21

the following success criteria overall: 22

1 Nick Martin, “Uber ready, waiting for Winnipeg,” Winnipeg Free Press, posted online October

23, 2017



1. Is the rating model fair and equitable? 1

The proposed rate model is fair and equitable in that it applies consistently to 2

taxis, TNCs, and other vehicles for hire. All vehicles for hire operators will have 3

the flexibility to select up to four time bands depending on when and how 4

frequently they intend to offer vehicle for hire services. The declared time 5

bands uses will be priced for risks based on current claims data. All vehicles for 6

hire operators will also have the same Basic. 7

2. Is the rating model actuarially-based? 8

MPI established vehicles for hire Rates for Service in accordance with existing 9

Basic rates to accommodate vehicles for hire insurance use in a way that is 10

consistent and equitable based on prior rates experience. Experience-based 11

rate adjustments will be used to maintain rates that are equitable as 12

experience is gained with vehicles for hire insurance use. A new vehicles for 13

hire insurance use will be created so that claims experience can be tracked 14

separately from the private passenger vehicle pool. 15

3. Is the rating model flexible enough to accommodate different 16

regulatory frameworks throughout the province as a result of Bill 30? 17

MPI established a broad range of vehicles for hire insurance uses anticipated to 18

accommodate different municipal regulatory frameworks. 19

VFH.2.3 Vehicles Eligible for Vehicles for Hire Insurance

To register and insure vehicles for hire operated in Manitoba, MPI has deemed two 20

vehicle types as eligible for the new insurance uses: 21

1. Passenger Vehicles (passenger cars, limousines, SUVs, mini-vans, etc.), and 22



2. Light Trucks2 (eligible for A5 registration with a Gross Vehicle Weight that is 1

less than 4,500 kg) 2

The passenger vehicle type will capture existing taxicabs, limousines (seating of 10 or 3

fewer), and accessible taxicabs, as well as the vehicles hired via online ridesharing 4

platforms. 5

Light trucks eligible to be registered in the A5 registration class are included in order 6

to keep the option of ridesharing open to a broad section of Manitoba’s population, 7

including rural or northern regions which may currently be underserved by vehicles for 8

hire, and where ownership of a personal truck may be more common than a 9

passenger vehicle. 10

Heavy trucks with a Gross Vehicle Weight of 4,500 kg and over are not eligible for 11

vehicles for hire insurance coverage. Trucks over 4,500 kgs are generally vehicles 12

registered and insured for business or commercial purposes, and are subject to a 13

range of regulatory requirements for heavy trucks, such as the provincial Periodic 14

Mandatory Vehicle Inspection and the Safety Fitness Certificate. Due to differences in 15

use and loss profile, these heavy trucks were not considered appropriate for inclusion 16

in the vehicle for hire rating pool with personally-owned passenger vehicles and light 17

trucks. 18

Similarly, motorcycles are not eligible for vehicle for hire insurance as their risk 19

exposure and loss experience is substantively different from other vehicles in the 20

vehicle for hire pool. Further, the vehicles for hire marketplace in North America has 21

not adopted motorcycles or mopeds as eligible vehicles associated with the service. As 22

the vehicles for hire service continues to mature, MPI will monitor the experience of 23

other North American jurisdictions. If motorcycles and mopeds become more 24

prevalent in this marketplace, MPI will re-evaluate the local market needs and options. 25

2 Light trucks will be eligible for passenger vehicles for hire insurance use only.



Vehicles with seating for 11 or more (including the driver) are not included in the VFH 1

Act definition of a ‘vehicle for hire’ and so will not be eligible for vehicle for hire 2

insurance. 3

VFH.2.3.1 Discontinued ‘X Plate’ Registration Class 4

To provide context for the Board’s understanding of the rate application, changes to 5

the vehicle registration classes are explained below. 6

In keeping with the intent of the VFH Act, vehicles for hire passenger vehicles and 7

light trucks will be registered in the respective passenger vehicle or light truck 8

registration class with regular plates. No new registration class, stickers, or plates will 9

be created for vehicles for hire. 10

To streamline the registration process and system, MPI will discontinue the 11

registration classes used for existing taxis, limousines and liveries. At present, the ‘X-12

plate’ registration class is comprised of four classes which are issued licence plates 13

beginning with “X”: 14

X1 – Taxicabs 15

X2 – City Liveries 16

X3 – Limousines Liveries 17

X4 – Country Liveries 18

The ‘X-plate’ registration classes will be expired and those registration classes will no 19

longer be issued after April 30, 2018. The use of ‘x-plates’ will be discontinued and, all 20

VFH vehicles will be issued standard plates. 21

Vehicles for hire will be registered in either the A1- Passenger Vehicles or A5- Trucks 22

registration class, and will be eligible for Specialty Plates and Personalized Licence 23

Plates. 24

Further details are discussed in section VFH.4.1 - Implementation plan. 25



VFH.2.4 Vehicle for Hire Rating Model

The Vehicles for Hire pool will consist of four 4 sub-categories: 1

1. Taxicab VFH 2

2. Limousine VFH 3

3. Accessible VFH 4

4. Passenger VFH 5

Premiums for each category have been established separately, which is discussed 6

further section VFH.3. 7

The insurance policies will be based on time bands permitting vehicles for hire 8

operation. Each of the 4 sub-categories (passenger, taxi, etc.) will have the same 4 9

time bands available to them. Customers can self-select any combination of 4 time 10

bands and premiums will be based on the number of time bands selected. Customers 11

will have the option to purchase 1, 2, 3, or all 4 time bands. At 4 time bands, a vehicle 12

for hire has the flexibility to operate 24 hours a day, seven days a week. 13

Figure 1: Time Bands for Insured VFH Commercial Operation 14

Outside of the time bands, vehicles for hire will be insured for non-commercial 15

operation. If a vehicle for hire fare originates during the selected time band, but 16

LineNo. Time Bands Time of Insured Commercial Operation

1 A Monday through Friday 10:00 am to 3:00 pm and Sunday through Thursday from 7:00 pm to 11:00 pm

2 B Nightly 11:00 pm to 7:00 am

3 C Monday through Friday 7:00 am to 10:00 am and 3:00 pm to 7:00 pm

4 D Friday 6:00 pm through Sunday 11:00 pm



extends beyond the time band and completes during a non-commercial operation time 1

period, insurance coverage for vehicles for hire operation will extend to cover the 2

duration of that fare. 3

The insured times of each time band were designed to accommodate the hours of 4

operation that vehicles for hire drivers might prefer, such as weekends, or evenings, 5

while balancing the increased level of exposure from operation between the four time 6

bands. As the selection of time bands is flexible, customers can tailor their operating 7

periods and related insurance costs to fit their availability and desired part-time or 8

full-time vehicles for hire participation level. The designed overlap in time between the 9

Overnight and Weekends time bands also provides further flexibility for customers 10

who may not want to select more than one time band. 11

VFH.2.4.1 Service Fees 12

To facilitate the transition to this new vehicle for hire insurance framework, there will 13

be no charge when changing the insurance on a passenger vehicle or light truck to 14

vehicle for hire. MPI may reevaluate this approach in future GRAs. 15

In most cases, when changing a vehicle registration class, a $15 vehicle registration 16

class change fee applies. However, the ‘X-plate’ class policies moving to A1/VFH will 17

be cancelled pro rata and then reactivated, therefore no vehicle registration class fee 18

will apply. 19

There will be no charge associated with changing the vehicle for hire operating time 20

bands meaning customers can add or drop time bands as needed. For example: 21

Increasing or decreasing the number of time bands 22

Changing the selected time band 23

A $15 vehicles registration class change applies in most cases, however, insurance use 24

changes will not be charged a fee. ‘X-plate’ class policies moving to A1/VFH will be 25



cancelled pro rata and then reactivated, therefore no fee for registration class change 1

will apply. 2

MPI collects service and transaction fees to offset the costs associated with Basic 3

Insurance. The proposed fee is consistent with the Basic Autopac Service and 4

Transaction fees currently approved by the PUB. All service fees are currently being 5

reviewed in compliance with Directive 11.6 to PUB Order 130/17. 6

VFH.2.5 Vehicle for Hire Basic Coverage

In keeping with the intent of the VFH Act, all vehicles for hire will have the following 7

Basic insurance coverage consistent with Basic’s all-purpose passenger vehicle 8

coverage: 9

$200,000 Third Party Liability 10

$50,000 Minimum Insured Value 11

$500 deductible 12

As a result of this change, taxicabs, limousines and livery vehicles (former ‘x-plate’ 13

vehicles) will see Basic deductible reduced by $100. MPI is not proposing to increase 14

vehicles for hire Basic insurance rates due to the decrease in deductible level from 15

$600 (current deductible level for ‘x-plate’ vehicles) to $500 (vehicles for hire 16

deductible level). The policy decision to lower the deductible level is meant to align 17

vehicles for hire with the rest of Basic, and is justified based on an expectation of 18

reduced risk exposure in these classes (see section VFH.3 for further details). 19

Comprehensive no-fault bodily injury coverage will continue to apply to Manitobans 20

injured in motor vehicle accidents including vehicles for hire accidents. 21



VFH.3 RATE SETTING FRAMEWORK

The following sections describe the rate setting framework for each of the sub-1

categories of vehicles for hire rates. The rate tables for 2018/19 premiums are 2

provided in Appendix 1 to this Application, while rate tables for 2017/18 premiums are 3

provided in Appendix 2. 4

Definitions provided in the following sections are the working definitions to enable 5

customers to select the correct insurance product, but the specific wording of these 6

definitions may be amended when incorporated into the Automobile Insurance 7

Certificates and Rates Regulation, M.R. 23/2017. 8

VFH.3.1 Passenger VFH

Definition: Passenger vehicles for hire has two sub categories, one for passenger 9

vehicles and one for trucks. Each are defined as follows: 10

“passenger vehicle-for-hire (passenger vehicle)” means a vehicle for 11

hire, which is a passenger vehicle and is not a taxicab vehicle for hire, a 12

limousine vehicle for hire, an accessible vehicle for hire, or a vehicle owned or 13

operated by or on behalf of a municipality to provide public transportation 14

services; 15

“passenger vehicle-for-hire (truck with 4,499 kg GVW or less)” means a 16

vehicle for hire that is a truck with a gross vehicle weight of 4,499 kg or less 17

and a body style as described in Schedule AA of the Automobile Insurance 18

Certificates and Rates Regulation, M.R. 23/2017 under The Manitoba Public 19

Insurance Act 20

What is changing from a ratemaking perspective? Passenger vehicles and light 21

trucks are eligible to operate as vehicles for hire. 22

Current Rates: This rating class does not currently exist. 23



Ratemaking Assumptions: It is assumed that the characteristics of this group are 1

as follows: 2

The operation of the vehicle does not fall within the definition of Taxi vehicles 3

for hire, Limo vehicles for hire, or Accessible vehicles for hire, which are 4

described in the following sections. 5

Loss exposure is greater than the Private Passenger All Purpose insurance use, 6

but less than a taxi3. 7

Internal data to support ratemaking: None. Passenger vehicles for hire has never 8

existed in the province. The current Taxi/Livery Passenger Vehicle insurance use is not 9

believed to be a good representation of the loss exposure for this rating classification. 10

External data to support ratemaking: The figure below provides a jurisdictional 11

scan of vehicles for hire rates in other jurisdictions. As shown in the figure, the 12

average vehicles for hire rate is approximately 8% to 25% higher than the all-purpose 13

rate. 14

Figure 2: Summary of Jurisdictional Review of VFH premiums

Proposed 2018/19 Passenger Vehicles for Hire Rates: Given the lack of MPI data 15

on Passenger vehicles for hire loss experience, the proposed initial rates for Passenger 16

vehicles for hire have been set based on the percentage difference between All 17

Purpose and Passenger vehicles for hire rates used in other jurisdictions (as shown 18

above). This ‘percentage increase’ method was assumed to best reflect the difference 19

in coverage and loss experience in Manitoba. The Level 4 (i.e. 24/7) Passenger VFH 20

was judgmentally set at 20% above the current Private Passenger All Purpose rate for 21

3 Based on MPI’s analysis of literature, other jurisdictions, and discussions with the industry

TNCLine Base Endorsement % OverNo. City Rate (per year) Base Rate1 Calgary $3,251 $500-$800 15%-25%2 Edmonton $3,410 $500-$800 15%-23%3 Toronto $6,593 $1,000 - $1,600 15%-24%4 Montreal $2,267 $190 8%



corresponding vehicle type and rate group. The rates for Levels 1, 2, and 3 Passenger 1

vehicles for hire were uniformly decreased on the assumption that the additional risk 2

from Passenger vehicles for hire approaches the Private Passenger All Purpose rate as 3

the number of time bands decreases. The rates are shown in the figure below: 4

Figure 3: Percentage Premium Increase by Number of Time Bands

VFH.3.2 Taxicab Vehicles for Hire

Definition: Taxicab vehicles for hire means a vehicle for hire that is a passenger 5

vehicle that is equipped with a taximeter. 6

What is changing from a ratemaking perspective? Taxis will now be able to 7

select time bands based on when they operate (i.e. Levels 1, 2, 3, and 4). Taxis will 8

now be able to receive Driver Safety Rating (DSR) vehicle premium discounts, if 9

registered as an individual customer. The deductible for Taxis will decrease from $600 10

to $500. 11

Current Rates: Taxi/Livery Passenger Vehicles (i.e. Taxis) are currently flat rated by 12

territory based on their historical loss experience. DSR vehicle premium discounts are 13

not available. 14

Ratemaking Assumptions: 15

There will be an as yet undetermined reduction in loss exposure for taxis as a 16

result of competition from Passenger vehicles for hire. 17

The exposure for taxis is always greater than the All Purpose Passenger Vehicle 18

use for the same vehicle, even for taxis selecting the lowest level i.e. Level 1. 19

LineNo. Number of Time Bands Rate1 1 All Purpose + 5%2 2 All Purpose + 10%3 3 All Purpose + 15%4 4 All Purpose + 20%



Internal data to support ratemaking: MPI has several decades of taxi claims 1

experience that is currently used to set Taxi/Livery Passenger Vehicle rates. 2

External data to support ratemaking: None. 3

Proposed 2018/19 Taxicab Vehicles for Hire Rates: 4

MPI set the Taxicab vehicles for hire Level 4 (i.e. 24/7) base rate equal to the PUB 5

approved 2018 Taxi/Livery Passenger Vehicle base rate. To determine the base rates 6

for Taxicab vehicles for hire Levels 1, 2, and 3, MPI first performed a percentage 7

weighting between (i) the 2018 approved Taxi/Livery Passenger Vehicle base rate and 8

(ii) the average All Purpose Passenger Vehicle base rate for the four most recent 9

model years. This calculation is shown in the figure below for Territory 1: 10

Figure 4: Taxicab VFH Blended Rate for Territory 1

MPI then compared the blended rates for Levels 1, 2 and 3, to the blended rate for 11

Level 4 to determine the percentage reduction for the lower levels. This calculation is 12

shown in the figure below for Territory 1: 13

Figure 5: Taxicab VFH Reduction by Level for Territory 1

Territory 1,All Purpose,

Line # of Levels Territory 1 Newest 4 Model Years, All Purpose BlendedNo. Purchased Taxi Base Rate Taxi Weight Average Base Rate Weight Rate1 4 $10,358 100% $1,882 0% $10,3582 3 $10,358 75% $1,882 25% $8,2393 2 $10,358 50% $1,882 50% $6,1204 1 $10,358 25% $1,882 75% $4,001

Line # of Levels Reduction from Selected Reduction fromNo. Purchased Blended Rate Level 4 Blended Rate Level 4 Blended Rate1 4 $10,358 0.00% 0.00%2 3 $8,239 -20.50% -20.00%3 2 $6,120 -40.90% -40.00%4 1 $4,001 -61.40% -60.00%



The figure below shows the selected percentage reduction for Taxicab vehicles for hire 1

by territory and vehicles for hire level: 2

Figure 6: Selected Percentage Reduction for Taxicab VFH by Territory and VFH

Level

To recognize that the Taxicab vehicles for hire use may have lower loss exposure than 3

the current Taxi use, it was judgmentally assumed that the availability of DSR vehicle 4

premium discounts and the reduction in the Basic deductible would offset this reduced 5

loss exposure. MPI is also optimistic that using DSR will encourage safer driving and 6

potentially reduce loss exposure going forward. 7

VFH.3.3 Limousine Vehicles for Hire

Definition: Limousine (Limo) vehicles for hire means a vehicle for hire that is 8

passenger vehicle having an extended wheelbase or is designed by the manufacturer 9

as a luxury or specialized passenger vehicle that is not equipped with a taximeter and 10

is operated for hire by a limousine or private car service, including sightseeing tours. 11

What is changing from a ratemaking perspective? Limousines will now be able to 12

select time bands based on when they operate (i.e. Levels 1, 2, 3, and 4). Limousines 13

will now be able to receive DSR vehicle premium discounts, if registered as an 14

individual customer. The deductible for Limousines will decrease from $600 to $500. 15

Current Rates: Limousine All Uses (i.e. Limos) are currently flat rated by territory 16

based on their historical loss experience. DSR vehicle premium discounts are not 17

available. 18

Line # of LevelsNo. Purchased Territory 1 Territory 2 Territory 3 Territory 41 4 0.00% 0.00% 0.00% 0.00%2 3 -20.00% -17.00% -18.00% -18.00%3 2 -40.00% -34.00% -36.00% -36.00%4 1 -60.00% -51.00% -54.00% -54.00%



Ratemaking Assumptions: Similar to Taxis, MPI has assumed that there will be 1

some loss of market share (particularly in Winnipeg) as a result of the introduction of 2

Passenger vehicles for hire. 3

Internal data to support ratemaking: MPI has several decades of limousine claims 4

experience that is currently used to set Limousine All Uses rates. 5

External data to support ratemaking: None 6

Proposed 2018/19 Limousine VFH Rates: 7

Territory 1: 8

For territory 1, MPI set the Limousine vehicles for hire Level 4 (i.e. 24/7) base rate 9

equal to the PUB approved 2018 Limousine All Uses base rate. To determine the base 10

rates for Limousine vehicles for hire Levels 1, 2, and 3, MPI first performed a 11

percentage weighting between (i) the 2018 approved Limousine All Uses base rate and 12

(ii) the average All Purpose Passenger Vehicle base rate for the four most recent 13

model years. This calculation is shown in the figure below: 14

Figure 7: Limousine VFH Blended Rate for Territory 1

MPI then compared the blended rates for Levels 1, 2 and 3, to the blended rate for 15

Level 4 to determine the percentage reduction for the lower levels. This calculation is 16

shown in the figure below: 17

Territory 1,All Purpose,

Line # of Levels Territory 1 Newest 4 Model Years, All Purpose BlendedNo. Purchased Limo Base Rate Limo Weight Average Base Rate Weight Base Rate

1 4 $3,203 100% $1,882 0% $3,2032 3 $3,203 75% $1,882 25% $2,8733 2 $3,203 50% $1,882 50% $2,5434 1 $3,203 25% $1,882 75% $2,212



Figure 8: Limousine VFH Reduction by Level for Territory 1

To recognize that the Limousine vehicles for hire use may have lower exposure than 1

the current Limousine All Uses insurance use, we judgmentally assumed that the 2

availability of DSR vehicle premium discounts and the reduction in the Basic deductible 3

would offset the reduced loss exposure. MPI is also optimistic that using DSR will 4

encourage safer driving and potentially reduce loss exposure going forward. 5

All Other Territories: 6

There are currently fewer than 30 limos in the rural territories. MPI has assumed that 7

overall loss exposure will not change. To determine rates, MPI judgmentally assumed 8

that a 5% rate reduction from the Limousine vehicles for hire Level 4 rate was 9

appropriate for each decrease in Limousine vehicles for hire level. For example, the 10

rate for Limousine vehicles for hire Level 2 will be 10% lower than the rate for 11

Limousine vehicles for hire Level 4. Based on this assumption, MPI then set the 12

Limousine vehicles for hire base rates at each level as a percentage of the current 13

Limousine All Uses base rate such that the average of the four levels was equal to the 14

Limousine All Uses base rate. The figure below shows the percentage of the current 15

Limousine All Uses base rate by Limousine vehicles for hire levels. 16

Figure 9: All Other Territories Limousine VFH

Line # of Levels Reduction from Selected Reduction fromNo. Purchased Blended Rate Level 4 Blended Rate Level 4 Blended Rate1 4 $3,203 0.00% 0.00%2 3 $2,873 -10.30% -10.00%3 2 $2,543 -20.60% -20.00%4 1 $2,212 -30.90% -30.00%

ProposedLine # of Levels Percentage ofNo. Purchased Limos Base Rate1 4 107%2 3 102%3 2 98%4 1 93%5 Average 100%



MPI judgmentally assumed that the higher rates for Limousine vehicles for hire at 1

Level 3 and Level 4, combined with the loss prevention incentives of DSR, would offset 2

the loss in revenue from the availability of DSR vehicle premium discounts and the 3

decrease in the Basic deductible for limousines. 4

VFH.3.4 Accessible VFH

Definition: Accessible vehicles for hire means a passenger vehicle that is equipped 5

with a wheelchair ramp, or lift and is operated for the transportation of persons who 6

use a wheelchair or mobility aid, motorized or otherwise, and their escorts, but does 7

not include vehicles owned or operated by or on behalf of a municipality to provide 8

public transportation services. 9

What is changing from a ratemaking perspective? Accessible vehicles will now be 10

able to select time bands based on when they operate (i.e. Levels 1, 2, 3, and 4). 11

Accessible vehicles will now be able to receive DSR vehicle premium discounts. The 12

deductible for Accessible vehicles will decrease from $600 to $500. The Accessible 13

vehicle insurance use (currently Wheelchair Livery Bus) will now be available in rural 14

territories. 15

Current Rates: Wheelchair Livery Bus are currently flat rated by declared value 16

based on their historical loss experience. DSR vehicle premium discounts are currently 17

not available. The Wheelchair Livery Bus insurance use is only applicable to accessible 18

vehicles in territory 1. 19

Ratemaking Assumptions: MPI has assumed there will only be very minor changes 20

in loss exposure for Accessible vehicles for hire because of the unique nature of this 21

insurance use. 22

Internal data to support ratemaking: MPI has several decades of accessible 23

vehicles claims experience that is used to set Wheelchair Livery Bus rates. 24

External data to support ratemaking: None. 25



Proposed 2018/19 Accessible VFH Rates: 1

Territory 1: 2

MPI has assumed that overall loss exposure will not change. To determine rates, MPI 3

judgmentally assumed that a 5% rate reduction from the Accessible vehicles for hire 4

Level 4 rate was appropriate for each decrease in Accessible vehicles for hire level. For 5

example, the rate for Accessible vehicles for hire Level 2 will be 10% lower than the 6

rate for Accessible vehicles for hire Level 4. Based on this assumption, MPI then set 7

the Accessible vehicles for hire base rates at each level as a percentage of the current 8

Wheelchair Livery Bus base rate (by declared value) such that the average of the four 9

levels was equal to the Wheelchair Livery Bus base rate. The figure below shows the 10

percentage of the current Wheelchair Livery Bus base rate by Accessible VFH levels. 11

Figure 10: Territory 1 Accessible VFH

MPI judgmentally assumed that the higher rates for Accessible vehicles for hire at 12

Level 3 and Level 4, combined with the loss prevention incentives of DSR, would offset 13

the loss in revenue from the availability of DSR vehicle premium discounts and the 14

decrease in the deductible for Accessible VFH. 15

All Other Territories: 16

Given that rates are currently not available for Wheelchair Livery Bus for Territories 2, 17

3, and 4, in order to set rates for Accessible vehicles for hire for these territories, MPI 18

applied the territory relativities for the Public Major Class as presented in the 2018 19

GRA, Volume II, Ratemaking, Appendix 9. The figure below shows the territory 20

ProposedPercentage of

Line # of Levels Wheelchair LiveryNo. Purchased Bus base rate 1 4 107%2 3 102%3 2 98%4 1 93%5 Average 100%



relativities and the percentage of Territory 1 Accessible vehicles for hire rates 1

applicable to Territories 2, 3 and 4. 2

Figure 11: Accessible VFH for Territories 2, 3 and 4

VFH.3.5 How Rates will be set in future GRAs

MPI will use the currently approved PUB ratemaking methodology to adjust the 3

required rates for each of the vehicles for hire uses (i.e. Passenger, Taxi, Limo, and 4

Accessible). MPI will then perform a separate relativity calculation within each of these 5

vehicles for hire to determine the relative rates by Level (i.e. 1, 2, 3, 4). By setting 6

rates based on the overall vehicles for hire experience in each VFH use (rather than 7

for each level separately) there will be more credible data for which to modify rates. 8

VFH.3.6 Vehicles for Hire 2017/18 Rates

As a result of staggered renewals, many customers will still have rates from the 9

2017/18 policy year in effect at the time the vehicles for hire insurance uses come into 10

effect. As a result, MPI has prepared the 2017/18 equivalent rates for each of the new 11

insurance uses described above. The methodology utilized to calculate the 2017/18 12

vehicles for hire rates is identical to the methodology used to calculate 2018/19 rates, 13

except using 2017/18 PUB approved rates. These rates are presented in Appendix 2 to 14

this Application. 15

Public Percentage ofLine Major Class Territory 1No. Territory Territory Relativity Accessible VFH Rate

1 1 1.1857 100.00%

2 2 0.6133 52.00%

3 3 0.6772 57.00%

4 4 0.7199 61.00%



VFH.3.7 Eligibility for Driver Safety Rating Vehicle Premium Discounts

All individual vehicles for hire customers will be eligible for a DSR discount. Therefore, 1

individual customers who choose to be vehicles for hire drivers will not lose their DSR 2

discount as a result of changing their vehicle insurance use to vehicles for hire. 3

Eliminating the DSR discount for these customers would be unfair and create a barrier 4

to entry into the vehicles for hire market. Further, allowing the DSR discount for all 5

individual vehicles for hire customers is consistent with the goal of establishing fair 6

and equitable rates across the vehicles for hire pool, and expands the availability of 7

DSR vehicle premium discounts to formerly ‘x-plated’ vehicles, enhancing the 8

incentive to drive safely, move up the DSR scale, and increase their vehicle premium 9

discount. 10

The DSR vehicle premium discount remains unavailable to corporate customers. 11

VFH.3.8 Impacts Taxi/Livery Policies Outside the VFH Framework

The dissolution of the Taxicab Board and the VFH Act vehicle-for-hire definition results 12

in certain outliers. Previously ‘x-plated’ taxi/livery vehicles with seating capacity of 11 13

or more are not captured under the VFH Act, and do not qualify for vehicles for hire 14

insurance policies. However these vehicles must still change registration class and 15

insurance use due to the discontinuance of the ‘x-plated’ registration class. Based on 16

the customer’s declared use of the vehicle, existing registration classes such as 17

Regulated Passenger Vehicle (AR) and Public Service Vehicle (PSV) and existing 18

insurance uses such as Common Carrier, Charter Bus – Local, Disabled Persons Bus, 19

and Private/Business Bus will be used for vehicles that fall outside of the Act vehicle 20

for hire definition. It is anticipated that fewer than 100 policies will be affected and 21

though there may be changes in premiums charged, in the vast majority of cases it is 22

expected that there will not be a negative financial impact to these customers. MPI will 23

work in coordination with the Province of Manitoba to communicate the changes to 24

existing taxi/livery policy holders. 25



VFH.4 CUSTOMER SERVICE

Vehicles for hire insurance will be available for purchase at brokers and MPI service 1

centers. Previously taxi/livery insurance was only available at MPI service centers, and 2

these customers were required to provide proof of Taxicab business licence (including 3

seasonal licenses/permits and bill of sale for the licence) and Certificate of Inspection 4

or Periodic Mandatory Vehicle Inspection certificate. Under the new vehicles for hire 5

insurance offering these supporting documents will no longer be required to receive 6

vehicle for hire insurance. Customers will still be required to sign a policy declaration 7

to confirm their intended use and provide documentation consistent with registering 8

an A1/A5 vehicle. These changes will improve access for customers and allow for the 9

casual uptake of vehicle for hire operation. 10

VFH.4.1 Implementation Plan

Currently there are less than 1000 taxi, limousine and wheelchair/accessible vehicles 11

with ‘X-plate’ class registration on the road today. Vehicles that fall under the 12

definition of vehicle-for-hire, as set out in the VFH Act, are eligible to purchase a new 13

vehicles for hire insurance use policy and self-select their desired operating time 14

band(s). This includes vehicles with a seating capacity of 10 or fewer occupants 15

(including the driver), hired on a single trip basis where the passenger controls the 16

destination/route. These vehicles will transition to A1 passenger vehicle registration 17

class and the applicable vehicles for hire insurance. 18

Currently, the Taxicab Board regulates taxicabs, wheelchair vans and limousines 19

operating in the City of Winnipeg as outlined in The Taxicab Act. These vehicles fall 20

within the X1 Taxicab, X2 Livery City or X3 Limousine City registration classes and are 21

insured as one of the following insurance uses; Taxi / Livery, Wheel Chair Livery or 22

Limousine All Uses. 23

The Motor Transport Board regulates the taxicabs operating in Manitoba outside the 24

City of Winnipeg as outlined in The Highway Traffic Act (section 23). These vehicles 25



fall within the A1 Passenger Vehicle or X4 Livery Country registration class and are 1

insured as one of Taxi / Livery or Limousine All Uses insurance uses. 2

Currently, X1 Taxicab, X2 Livery City, X3 Limousine City and X4 Livery Country 3

vehicles must be registered at a MPI Commercial Vehicle Registration location. There 4

is no restriction on a taxi/livery vehicle's designed seating capacity. These vehicles are 5

issued Livery plates (‘x-plates’) and must be renewed annually. 6

The ‘x-plate’ registration classes and associated insurance uses (Taxi/livery, Limousine 7

All-Use, and Wheelchair Livery) will be expired in coordination with the Government of 8

Manitoba. All vehicles in these categories will need to transition into one of the new 9

vehicle for hire insurance uses (unless the vehicle is an outlier, as explained in section 10

VFH.3.8). The ‘x-plate’ registration classes and taxi/livery insurance uses will no 11

longer be available for sale as of April 30th 2018. This date was selected to allow for 12

the run off of policy renewals. 13

Effective March 1, 2018, existing taxi/livery vehicle customers as well as regular 14

Manitobans can visit a broker or MPI service centre and purchase vehicles for hire 15

insurance. The transition from taxi/livery vehicle to VFH will be forced at the 16

customer's next vehicle renewal. Therefore it may take up to 1 year after March 1, 17

2018 for the transition to complete. Taxi/livery vehicle customers can visit a MPI 18

agent prior to their renewal date to change to vehicles for hire insurance. MPI believes 19

that existing taxi/livery vehicle customers will recognize the advantage of transitioning 20

their insurance to one of the new vehicles for hire subcategories. For example, 21

individual customers purchasing vehicles for hire insurance use are eligible for a DSR 22

discount, and a $500 Basic deductible. 23

VFH.4.2 Rating Model Enforceability

The customer selected ‘time band(s)’ will be depicted in an addendum to the current 24

vehicle registration and insurance certificate which is used by the customer to provide 25

evidence of valid vehicle registration, insurance and where applicable, confirmation of 26

valid vehicle for hire insurance based on the time of day. The time band information 27



will also be available to MPI’s claims administration staff for instances whereby a 1

vehicle for hire automobile experiences a claim. The vehicle insurance information as 2

well as the time of day of the incident, witness/passenger statements as well as data 3

available via Manitoba municipalities will be utilized by MPI claims administration staff 4

in order to confirm valid insurance coverage on the vehicle. 5

VFH.5 FINAL APPROVAL OF VFH RATES

MPI proposes that the final determination of VFH rates will take place as part of the 6

2019 GRA. MPI will bring an application for 2017/18 and 2018/19 rates for service, as 7

contained in this interim application, as well as 2019/20 vehicles for hire rates for 8

service, consistent with the rest of the GRA. The PUB’s final determination on 2017/18 9

and 2018/19 rates would be contained in the 2019 GRA Order, and any variance 10

between interim and final approval of rates would be rebated or collected, as 11

explained further in section VFH.5.1 below. 12

All interveners, interested parties and the public at large will be able to adequately 13

challenge the rates for service during the 2019 GRA. Parties with standing will be able 14

to test the evidence and bring their case to the PUB for determination of final vehicles 15

for hire Rates for Service. Any potential prejudice to intervenors or interested parties, 16

as a result of this interim application and its expedited process, is alleviated by 17

adequate alternative remedy in the 2019 GRA. 18

VFH.5.1 Refund/Collection Mechanism for Final Approved Rates

Further, parties to the proceeding can have confidence that any variance between 19

interim and final rates will be accurately refunded or rebated to affected ratepayers. 20

MPI currently has an automated process to trigger a ‘re-rating’ of an insurance policy 21

without requiring a customer visit to a broker or service centre. If the PUB approves 22

final vehicles for hire Rates for Service for the 2017/18 and 2018/19 insurance years 23

that differ from those approved on an interim basis, MPI will identify all vehicles for 24



hire customers and initiate a re-rating of the insurance policy. This will complete a 1

new insurance rating calculation process and the new approved rates will be used to 2

determine the appropriate insurance premium that should have been collected. 3

In the event of either an increase or reduction in premium, the associated balance will 4

be applied to the respective customer account and a letter will be sent to each 5

customer explaining the amount due or credit on the customer account will be 6

produced and sent to the customer for follow-up action. 7

December 15, 2017 2018 INTERIM APPLICATIONVehicles for Hire Appendix 1

2018 BASIC RATE TABLE

TERR DISC % INSURANCE USE DESCRIPTION 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 401 0 Accessible Vehicle-for-Hire 1 1220 1269 1344 1414 1491 1563 1636 1707 1789 1862 1935 2010 2084 2159

1 5 Accessible Vehicle-for-Hire 1 1159 1206 1277 1343 1416 1485 1554 1622 1700 1769 1838 1909 1980 2051















































1 0 Limousine Vehicle-for-Hire 1 2242








TERR DISC % INSURANCE USE DESCRIPTION 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 401 26 Limousine Vehicle-for-Hire 1 1659










































1 0 Passenger Vehicle-for-Hire 1 (Passenger Vehicle) 679 733 763 790 816 842 868 895 922 947 970 979 1004 1046 1078 1118 1160 1202 1247 1290 1336 1381 1422 1466 1511 1566 1615 1662 1710 1759 1805 1851 1894 1936 1976 2018 2064 2110 2157 2202 2248
















TERR DISC % INSURANCE USE DESCRIPTION 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 401 10 Passenger Vehicle-for-Hire 2 (Passenger Vehicle) 641 691 720 744 769 794 819 843 869 893 914 922 947 986 1017 1054 1093 1133 1176 1217 1259 1301 1340 1382 1425 1476 1523 1567 1613 1658 1702 1745 1786 1825 1863 1903 1947 1990 2033 2076 2119


































1 0 Passenger Vehicle-for-Hire 1 (Truck 4,499 kg or less GVW) 541 607 642 667 685 702 721 739 757 772 800 824 845 865 888 916 936 959 981 1005 1039 1076 1117 1158 1199 1243 1282 1338 1377 1424 1486 1540 1589 1637 1675 1735 1784 1833 1882 1931 1980
























TERR DISC % INSURANCE USE DESCRIPTION 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 401 30 Passenger Vehicle-for-Hire 2 (Truck 4,499 kg or less GVW) 396 445 470 489 502 515 529 542 555 566 587 604 619 634 652 671 686 703 719 737 762 789 819 849 879 911 940 981 1009 1044 1089 1130 1165 1200 1228 1272 1308 1345 1380 1416 1452


























1 0 Taxicab Vehicle-for-Hire 1 4143
































TERR DISC % INSURANCE USE DESCRIPTION 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 401 26 Taxicab Vehicle-for-Hire 3 6132




































































Commuter 0 Passenger Vehicle-for-Hire 1 (Passenger Vehicle) 755 814 847 877 906 936 965 994 1024 1052 1077 1088 1114 1161 1198 1243 1289 1336 1386 1433 1484 1533 1579 1629 1678 1740 1793 1846 1900 1954 2004 2057 2104 2151 2194 2242 2293 2345 2395 2446 2498
















































TERR DISC % INSURANCE USE DESCRIPTION 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40Commuter 30 Passenger Vehicle-for-Hire 4 (Passenger Vehicle) 604 651 678 701 725 748 772 795 819 841 862 870 891 929 958 995 1032 1068 1109 1147 1187 1226 1263 1303 1343 1392 1435 1477 1520 1563 1604 1646 1683 1721 1756 1793 1835 1876 1916 1957 1998


Commuter 0 Passenger Vehicle-for-Hire 1 (Truck 4,499 kg or less GVW) 575 645 681 709 728 747 766 786 804 820 850 876 899 920 944 972 994 1018 1042 1068 1105 1144 1188 1232 1275 1321 1363 1422 1463 1513 1579 1637 1688 1741 1780 1844 1896 1948 2000 2053 2104


















































2017 BASIC RATE TABLE































































1 0 Taxicab Vehicle-for-Hire 4 ####




















































TERR DISC % INSURANCE USE DESCRIPTION 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40Commuter 30 Passenger Vehicle-for-Hire 4 (Passenger Vehicle) 592 637 671 696 722 747 772 797 822 846 868 873 896 937 960 992 1025 1058 1095 1129 1164 1200 1232 1268 1303 1362 1408 1450 1496 1541 1583 1625 1660 1695 1723 1744 1764 1784 1805 1826 1845



















































THE MANITOBA PUBLIC UTILITIES BOARD .

IN THE MATIER OF THE MANITOBA PUBLIC INSURANCE CORPORATION

APPLICATION FOR INTERIM 2018/19 VEHICLES FOR HIRE PREMIUM RATES

NOTICE OF MOTION OF THE MANITOBA PUBLIC INSURANCE CORPORATION

DECEMBER 4, 2017

Manitoba Public Insurance ("MPI" } app lies, pursuant to section 4(3) of the Public Utilities Board Rule of Practice and Procedure, for an order:

1. Directing MPI on the procedure to be used for an intended application for rates for Vehicles for Hire.

a) MPI seeks an order finding that special circumstances exist to warrant an ex parte application, and providing specific directions on procedure for this pending application.

Statement of Facts

2. On November 10th, 2017, Royal Assent was given to Bill 30 which establishes The Local Vehicles for Hire Act ("the Act"). The Act abolishes regulation of the taxi industry in Winnipeg through the Taxicab Board and transfers regulatory responsibilities for all vehicles for hire to each municipality. The Act comes into force on February 28, 2018 and allows for a new class of vehicles for hire beyond the tradit ional taxicab.

3. To offer compulsory insurance for vehicles for hire, MPI must seek the Public Utilities Board ("PUB") approval of premium rates both for this new class of vehicles for hire, and for new premium rates for the existing classes of vehicles for hire (taxicabs, limos and wheelchair accessible vehicles).

Grounds

4. The Timeline for Approval of Rates Presents a Special Circumstance:

a) The Act will be in force on February 28, 2018, and therefore MPI must have the ability to charge appropriate rates for all vehicles for hire by March 1, 2018 to enable all legitimate forms of vehicles for hire commerce to operate in Manitoba.

b) To meet the March 1, 2018 deadline, MPI must be in receipt of the PU B's order regarding vehicles for hire rates no later than January 15th, 2018. This date will allow MPI to implement necessary system changes and to work with government to enact required regulation amendments so that MPI can charge the required rates on March 1, 2018.

Manitoba Public Insurance Page 1of4

c) MPI must understand any implications from the City of Winnipeg's proposed by-law concerning vehicles for hire operating in Winnipeg, prior to bringing an application. MPI believes its planned filing date on or about December 15th, will allow for consideration of Winnipeg's by-law.

d) MPI could not have filed an application for Vehicles for Hire premium rates prior to the passage Bill 30.

e) MPI submits that the limited time before the Act is in force, combined with the requirement for PUB approval of rates, creates a special circumstance that warrants the unusual step of requesting approval of interim rates, on an ex parte basis.

f) By requesting an interim ex parte order no later than January 15th, 2018, MPI seeks to avoid the obvious public harm that will result if there is no appropriate insurance product available when the Act comes into force.

5. The Application:

a) MPI intends to seek approval of vehicles for hire premium rates on an interim refundable basis.

b) MPI proposes that the full public testing, and final determination of the vehicles for hire rates will take place as part of the 2019 General Rate Application. Specifically, in the 2019 General Rate Application MPI will bring an application for 2018/19 and 2019/20 vehicles for hire rates. The PU B's final determination on 2018/19 rates would be contained in the 2019 General Rate Application order, and any variance between interim and final approval of rates would be rebated or collected.

c) MPI proposes that it will process rebates or collections on a customer account basis, ensuring the fairest implementation of the PU B's order.

d) MPI submits that the interim ex parte order should be viewed as part of a continuum 1 through to final determination of the 2018/19 vehicles for hire rates in December 2018.

6. MPl's proposal for an ex parte process is procedurally fair in these circumstances

a) MPI submits that the situation outlined above warrants a finding of special circumstances by the PUB, per section 24(2)(d) of the Public Utilities Board Rule of Practice and Procedure, and that the appropriate course of action is to hear the interim vehicles for hire rate application on an ex parte basis. MPI also submits that this motion provides full disclosure as to why the application should proceed ex pa rte, per section 24(2)(e) of the Public Utilities Board Rule of Practice and Procedure.

b) All potential interveners, interested parties and the public at large will be able to adequately challenge the rates during the 2019 General Rate Application. There, parties with standing will be able to test the evidence and bring their case to the PUB for determination of final vehicles

1 Consistent with Consumers' Association of Canada (Man.) Inc. et al. v. Public Utilities Board {Man.), 2006 MBCA 156, paragraph 22


for hire rates. Further, parties to the proceeding can have confidence that any variance between interim and final rates will be accurately refunded or rebated to affected ratepayers.

c) MPI acknowledges the guidance provided by the Supreme Court of Canada in Ruby v. Canada (Solicitor General), [2002) 4 SCR 3, 2002 SCC 75 (Canlll), where at paragraph 25 through 27 the court stated:

"25 Ex parte, in a legal sense, ·means a proceeding, or a procedural step, that is taken or ·granted at the instance of and for the benefit of one party only; without notice to or argument by any adverse party: Attorney General of Manitoba v. National Energy Board, 1974 CanLll 1239 (FC), [1974) 2 F.C. 502 (T.D.). The circumstances in which a court will accept submissions ex parte are exceptional and limited to those situations in which the delay associated with notice would result in harm or where there is a fear that the other party will act improperly or irrevocably if notice were given. For instance, temporary injunctions are often issued ex parte in order to preserve the status quo for a short period of time before both parties can be heard (to prevent the demolition of a building, for example).

26 Ex parte proceedings need not be held in camera. Indeed, ex parte submissions are often made in open court (in interlocutory matters, for example). In fact, an order will still be considered ex parte where the other party happens to be present at the hearing but does not make submissions (for instance, because of insufficient notice): Royal Bank v. W. Got & Associates Electric Ltd., 1994 Canlll 8922 (AB QB), [1994) 5 W.W.R. 337 (Alta. Q.B.), at para. 10, aff d 1997 ABCA 136 (CanLll), [1997) 6 W.W.R. 715 (Alta. C.A.), aff d (without reference to this point) 1999 CanLll 714 (SCC), [1999) 3 S.C.R. 408. On the other hand, other ex parte proceedings are, by necessity, not held in public. An application for a wiretap authorization, for instance, must be made both ex parte and in camera.

27 In all cases where a party is before the court on an ex parte basis, the party is under a duty of utmost good faith in the representations that it makes to the court. The evidence presented must be complete and thorough and no relevant information adverse to the interest of that party may be withheld : Royal Bank, supra, at para. 11. Virtually all codes of professional conduct impose such an ethical obligation on lawyers. See for example the Alberta Code of Professional Conduct, c. 10, r. 8."

[Emphasis added]

Relief Sought

7. MPI proposes to file an application for approva l of vehicles for hire premium rates on or about December 15th, 2017. This will allow approximate ly one month for regulatory review, in order to ensure that policies can be sold at the beginning of March, 2018.

8. Given the short time frame for regu latory review, MPI seeks to proceed ex parte, pursuant to section 41 of the Public Utilities Board Rule of Practice and Procedure.


9. Despite the fact that MPI is seeking an interim ex parte order, the Corporation values transparency therefore offers to publish a Notice of Application in newspapers and electronically on MPl's website, along with serving the Notice of Application on intervenors to the 2018 General Rate Application, representatives of the vehicles for hire industry, and interested parties2• MPI will also post the interim application and all related materials on its public website consistent with its practice in the General Rate Application.

10. Subsequent to an order on this motion, MPI can prepare a draft of the public notice reflecting the PU B's desired procedure, and finalize the draft with approval of the Board secretary.

Alternative Relief

11. MPI believes that any prejudice to intervenors or interested parties is alleviated by the fact that both will be able to challenge the rates as part of the 2019 General Rate Application however, the PUB may wish consider as the following alternative processes:

a) An abbreviated Information Request process, in the event that the PUB requires clarification of the vehicles for hire interim rate application.

b) A short (one day) oral hearing where an MPI panel would be seated to answer questions from PUB counsel and where interested parties and the public may also be present. MPI submits that a short oral hearing be an option of last resort given the time constraints and the fact that the evidence can be fully tested during the 2019 General Rate Application.

c) Allowing interveners and interested parties to provide written comments on the interim application, but that such comments should not be treated as evidence, in much the same way the PUB hears from members of the public at a General Rate Application.

d) Allowing interveners to provide comment on the process for approval of final 2018/19 rates, specifically if there is a preference for hearing this matter as part of the 2019 General Rate Application, or as part of a separate proceeding. Such comment may inform the PU B's determination on process for final approval of 2018/19 vehicles for hire rates, in the interim order.

ALL OF WHICH IS RESPECTFULLY SUBMITIED this 4 th day of DECEMBER, 2017

..-

~-----fc,r : Mike Triggs

General Counsel & Corporate Secretary Manitoba Public Insurance

2 As found in Appendix "A" to the PUB letter dated June 16, 2017


MANITOBA PUBLIC INSURANCE

VEHICLES FOR HIRE 2018 INTERIM APPLICATION

ORDERS

PUB Board Order 132/17

PUB Board Order 140/17

Room 400 – 330 Portage Avenue Winnipeg, MB R3C 0C4 www.pubmanitoba.ca

330, avenue Portage, pièce 400 Winnipeg (Manitoba) Canada R3C 0C4 www.pubmanitoba.ca

Order No. 132/17

MANITOBA PUBLIC INSURANCE CORPORATION (MPI OR THE CORPORATION): APPLICATION FOR INTERIM 2018/19 VEHICLES FOR HIRE PREMIUM RATES

PROCEDURAL ORDER

MOTION FOR DIRECTIONS ON PROCEDURE

December 12, 2017

BEFORE: Irene A. Hamilton, Acting Chair Robert Vandewater, Member Carol Hainsworth, Member

http://www.pubmanitoba.ca/


Order No. 132/17 December 12, 2017

Page 2 of 9

Table of Contents

1.0 Executive Summary ............................................................................................ 3

2.0 Overview .............................................................................................................. 3

2.1 Background and Grounds for Motion ................................................................ 3

3.0 Board Findings .................................................................................................... 5

4.0 IT IS THEREFORE ORDERED THAT: ................................................................. 7


Page 3 of 9

1.0 Executive Summary

By this Order, the Public Utilities Board of Manitoba ("Board") directs Manitoba Public

Insurance ("MPI" or "the Corporation") as to the procedure related to its proposed

Application for Interim 2018/19 Vehicles for Hire Premium Rates ("Application"). The

Board also establishes a timetable pertaining to the Application.

2.0 Overview

On December 4, 2017, the Corporation filed a Notice of Motion, pursuant to Rule 4(3)

The Board's Rules of Practice and Procedure, for an Order for directions on procedure

relating to the Application.

The Corporation sought an order finding that special circumstances exist to warrant that

the Application proceed ex parte pursuant to section 45 of The Public Utilities Board

Act, C.C.S.M. c. P280 ("the Act").

The Corporation also offered, in the alternative, an abbreviated hearing process which

would provide for an Information Request process, a one-day oral hearing, the receipt of

written submissions from interveners and interested parties and opportunity for

interveners to provide comment on the process for approval of final 2018/19 rates.

2.1 Background and Grounds for Motion

By its Notice of Motion, the Corporation submitted as follows:

a) On November 10, 2017, Royal Assent was given to Bill 30 which establishes The

Local Vehicles for Hire Act, S.M. 2017, c. 36 ("LVH Act"). The LVH Act abolishes

regulation of the taxi industry in Winnipeg through the Taxicab Board and

transfers regulatory responsibility for all vehicles for hire to each municipality.

The LVH Act comes into force on February 28, 2018 and allows for a new class

of vehicles for hire beyond the traditional taxi cab.


Page 4 of 9

b) To offer compulsory insurance for vehicles for hire, the Corporation must seek

Board approval of premium rates for this new class of vehicles for hire and,

possibly, for new premium rates for the existing classes of vehicles for hire.

c) In order to provide compulsory insurance for vehicles for hire by March 1, 2018,

the Corporation submitted that it must be in receipt of an Order from the Board

approving premium rates for this new class of vehicle no later than January 15,

2018, in order to allow the Corporation to implement necessary system changes

and to work with government to enact the required regulation amendments so

that it can apply the required charges as of March 1, 2018.

d) The Corporation could not have filed an application for vehicles for hire premium

rates prior to the passage of Bill 30 and thereafter required additional time to

analyze and review any implications from The City of Winnipeg's proposed By-

Law concerning vehicles for hire operating in Winnipeg.

e) The limited time before the LVH Act is in force, combined with requirement for

Board approval of rates, creates a "special circumstance", warranting the

unusual step of requesting approval of interim rates on an ex parte basis.

f) That an ex parte interim order is necessary in order to avoid obvious public harm

that will result if there is no appropriate insurance product available when the

LVH Act comes into force.


Page 5 of 9

3.0 Board Findings

The Act provides the Board with the jurisdiction to establish its own procedure for the hearing of applications before it. Section 24 of the Act provides as follows:

Procedure governed by rules

24(1) All hearings and investigations conducted by the Board shall be governed by rules adopted by the Board.

Rules of evidence not binding on Board

24(2) The Board is not bound by the technical rules of legal evidence.

Rules of practice, their publication

24(3) The Board may make rules of practice, not inconsistent with this Act, regulating its procedure and the times of its sittings, but the rules do not come into force until they are published on the Board's website.

Board to have powers of Court of Queen's Bench in certain matters

24(4) The Board, except as herein otherwise provided, as respects the attendance and examination of witnesses, the amendment of proceedings, the production and inspection of documents, the enforcement of its orders, the payment of costs, and all other matters necessary or proper for the due exercise of its powers, or otherwise for carrying any of its powers into effect, has all such powers, rights, and privileges as are vested in the Court of Queen's Bench or a judge thereof.

Evidence by affidavit or report

24(6) The Board may, in its discretion, accept and act upon evidence by affidavit or written affirmation or by the report of a member or of any officer or technical adviser appointed hereunder or obtained in such other manner as it may decide.


Page 6 of 9

Section 15(3) of the Act states that all sittings of the Board for hearing applications and taking evidence shall be open to the public. However, section 45 of the Act empowers the Board to make an interim ex parte order if the special circumstances of any case so require.

Ex parte hearings are rare and the party seeking an ex parte application must show why special circumstances "require" it. The special circumstances necessary to require an ex parte hearing would include those instances where notice of the application would cause harm to the applicants or the public.

As an alternative, Section 47(2) of the PUB Act provides that the Board may make an interim order and reserve further direction either for an adjourned hearing of a matter or for a further application.

While the Rules of Practice and Procedure apply to all proceedings of the Board, Rule 3(2) provides that the Board may dispense with, vary or supplement any of the provisions of the Rules. Rule 4(1) further provides that, in any proceeding, the Board may issue directions on procedure which will govern the conduct of that proceeding and will prevail over any provision of the Rules that is inconsistent with those directions.

The Rules further contemplate that a proceeding before the Board may be conducted entirely in writing (see: Rule 2(i), (s)). This is also clearly contemplated in the Act, as section 24(6) permits the Board to accept or act upon evidence by affidavit or written affirmation.

The Board controls its own process and therefore can expedite the manner of an interim hearing if it is necessary to do so. It is not reasonable to dispense with notice simply to expedite the process. Given that section 15(3) of the Act makes it clear that the public has a right to attend Board hearings, the Board is of the view that urgency alone is not sufficient to proceed on an ex parte basis, especially where an expedited hearing can achieve the objective of public participation even when there is very limited time to do so.

It appears that the primary reason for the Corporation's request for an ex parte hearing is one of urgency. Given the foregoing, the Board finds that the Application can proceed as a hearing conducted entirely in writing, with notice to the public. This will permit the Application to be heard on an expedited basis, while at the same time satisfying the need for the opportunity for public participation.

Accordingly, the Board has determined that in the present case special circumstances do not exist that require a hearing of the Application to proceed on an ex parte basis.


Page 7 of 9

The Board, however, appreciates the urgency of the matter and therefore is prepared to order that the Application proceed as a written hearing on an expedited basis.

As there will be no oral hearings, the Board further orders that the contents of the Application and responses to Information Requests shall be confirmed by sworn or affirmed affidavit.

4.0 IT IS THEREFORE ORDERED THAT:

1. The Application for Interim 2018/19 Vehicles for Hire Premium Rates to be filed

by the Corporation shall proceed as a written hearing on an expedited basis.

2. The contents of the Application for Interim 2018/19 Vehicles for Hire Premium

Rates and responses to Information Requests be confirmed by sworn or affirmed

affidavit.

3. The Corporation shall forthwith after receipt of this Order, and no later than

December 15, 2017, publish a Notice of Application electronically on the

Corporation's website.

4. The Corporation shall forthwith after the receipt of this Order, and no later than

December 15, 2017, serve the Notice of Application on interveners to the 2018

General Rate Application, representatives of the vehicle for hire industry and all

interested parties identified in Appendix "A" to the letter dated June 16, 2017

from the Public Utilities Board to the Corporation.

5. Schedule "A", as attached, shall be the timetable for the hearing of the

Application.


Page 8 of 9

Board decisions may be appealed in accordance with the provisions of Section 58 of

The Public Utilities Board Act, or reviewed in accordance with Section 36 of the Board’s

Rules of Practice and Procedure. The Board’s Rules may be viewed on the Board’s

website at www.pubmanitoba.ca.

THE PUBLIC UTILITIES BOARD “Robert Gabor, Q.C.” Chair

“Darren Christle” Secretary Certified a true copy of Order 132/17 issued by the Public Utilities Board

__________________________ Secretary




SCHEDULE “A”

TIMETABLE

ITEM DATES Day of the Week

Elapsed Working

Days

1. Application filed and served December 15, 2017 Friday 0

2. Notice of Public hearing to be published December 15, 2017 Friday 0

3. Interveners complete Registration December 20, 2017 Wednesday 3

4. Last day to file as an Intervener December 20, 2017 Wednesday 3

5. Board to circulate list of Interveners December 22, 2017 Friday 5

6. MPI to be in receipt of information

requests

December 29, 2017 Friday 8

7. MPI to provide responses to information

requests

January 4, 2018 Thursday 11

8. MPI to file and serve written submissions January 5, 2018 Friday 12

9. Interveners to file and serve written

submissions

January 9, 2018 Tuesday 14

10. MPI to file and serve written reply

submissions

January 10, 2018 Wednesday 15

11. Board issues Order January 15, 2018 Monday 18





Order No. 140/17

MANITOBA PUBLIC INSURANCE CORPORATION (MPI OR THE CORPORATION):


PROCEDURAL ORDER APPROVAL OF INTERVENERS, TIMETABLE FOR HEARING

AND LIST OF ISSUES

December 22, 2017

BEFORE: Irene A. Hamilton, Acting Chair Robert Vandewater, B.A., FCSI, CPA (Hon), CA (Hon), KStJ., C.D.,Member Carol Hainsworth, Member


Page 2 of 12

Table of Contents

1.0 Executive Summary ............................................................................................ 3

2.0 Overview .............................................................................................................. 3

3.0 Applications for Intervener Status ..................................................................... 4

4.0 Board Findings .................................................................................................... 4

5.0 IT IS THEREFORE ORDERED THAT: ................................................................. 6


Page 3 of 12

1.0 Executive Summary

The Public Utilities Board of Manitoba (Board) hereby accepts Consumers' Association

of Canada (Manitoba) Inc. as an Intervener to the Board’s hearing of the Application for

Interim 2018/19 Vehicles for Hire Premium Rates of Manitoba Public Insurance

Corporation (MPI or Corporation) to take effect March 1, 2018. By this Order the Board

also confirms the timetable pertaining to the proceeding and provides direction on the

issues to be considered in this Application.

2.0 Overview

The Corporation filed the Application for Interim 2018/19 Vehicles for Hire Premium

Rates (Application) with the Board on December 15, 2017. The filing of the Application

followed Board Order 132/17, issued in response to a motion filed by the Corporation on

December 4, 2017, for an ex parte hearing of the Application.

The Corporation had indicated to the Board in its motion that with the coming into force

of The Local Vehicles for Hire Act, S.M. 2017, c. 36 on February 28, 2018, in order to

provide compulsory insurance for vehicles for hire by March 1, 2018, it would require an

order from the Board no later than January 15, 2018. This would enable it the

opportunity to implement necessary system changes and to work with the Government

to enact the required regulatory amendments by March 1, 2018.

By Order 132/17, the Board declined to allow the Application to proceed ex parte but

ordered that the Application proceed as a written hearing on an expedited basis given

the urgency of the matter. The Board also established a timetable for the hearing of the

Application.


Page 4 of 12

3.0 Applications for Intervener Status

In accordance with Order 132/17, applications for Intervener status in the Application

were required to be filed with the Board on or before December 20, 2017.

The Board received one application for intervener status, from Consumers' Association

of Canada (Manitoba) Inc. (CAC).

CAC advised that it intends to test whether the proposed interim rates for vehicles for

hire meet the standard for approval of interim rates, and the more general test of being

just and reasonable. It also indicated that it intends to consider the implications of the

proposed rates on consumers, including persons living with disabilities. CAC advised

that its participation in the hearing would include the testing of the evidence and

presenting final argument.

CAC also advised that it will seek a costs award, and provided an intervention budget in

the amount of $2,823.88 to $4,566.34, including legal fees, consulting fees and

disbursements.

4.0 Board Findings

After considering the application of CAC, the Board is prepared to grant it intervener

status in the Application.

Attached to this Order as Schedule “A” is the rate sheet by which Board counsel and

counsel for CAC shall have their rates set, according to years of seniority at the Bar.

Should CAC determine that its approved budget will be exceeded by 10% or more, it is

to immediately notify the Board, explain the reason for the need to revise the budget

and also propose the amount of additional funding being sought.


Page 5 of 12

The Board has determined that the following issues shall be considered in the

Application:

a) The rates sought;

b) The rate-setting framework;

c) The principles for the rating model;

d) The classes of vehicles to which the rating model applies;

e) The clarity of the rates sought as compared to rates already in place for vehicles

in the Taxicab, Limousine and Wheelchair Livery Bus classes;

f) The implications of the proposed rates on consumers, including persons living

with disabilities;

g) Rating model enforceability;

h) The plan for implementation of the proposed rates;

i) The process for final approval of rates and any variance between interim and

final rates; and

j) Any other issues that may arise.

The Board hereby confirms the timetable for the hearing of this Application, as was set

out in Order 132/17, and which is attached as Schedule "B" to this Order.

As was also set out in Order 132/17, the Application shall proceed as a written hearing

on an expedited basis. Attached hereto as Schedule “C” are the procedures to be

followed over the course of the hearing process, and attached hereto as Schedule "D"

is the Information Request template to be utilized by all parties to the Application. As

provided for within the template, the party submitting an Information Request must

reflect the rationale for the question. Similarly, and as also provided for within the

template, should a full or partial answer be refused, the party refusing to answer or fully

answer the question must reflect the rationale for the refusal.


Page 6 of 12

5.0 IT IS THEREFORE ORDERED THAT:

1. Consumers' Association of Canada (Manitoba) Inc. shall have intervener status

in the Application.

2. Schedule "B", as attached, shall be the timetable for the hearing of the

Application.

3. Schedule "C", as attached, shall apply with respect to the hearing of the

Application.




website at www.pub.gov.mb.ca.

THE PUBLIC UTILITIES BOARD “Irene Hamilton” Chair

“Darren Christle” Secretary

Certified a true copy of Order No. 140/17 issued by The Public Utilities Board

_______________________________

Secretary


Page 7 of 12

SCHEDULE “A”

PUBLIC UTILITIES BOARD OF MANITOBA

RATE STRUCTURE

(Effective as of January 1, 2016)

LEGAL COUNSEL:

20 or more years of relevant experience $285/hr

15-19 years Up to $240/hr



Base salary (new lawyer) $100/hr

ACCOUNTANTS:






Page 8 of 12

Base fee (new accountant) $100/hr

ENGINEEERING SERVICES:





Base fee $100/hr


Page 9 of 12

SCHEDULE “B”

TIMETABLE

ITEM DATES Day of the Week

Elapsed

Working Days

1. Application filed and served December 15, 2017 Friday 0

2. Notice of Public Hearing to be

published


3. Interveners complete Registration December 20, 2017 Wednesday 3

4. Last day to file as an Intervener December 20, 2017 Wednesday 3

5. Board to circulate list of Interveners December 22, 2017 Friday 5

6. MPI to be in receipt of information

requests


7. MPI to provide responses to

information requests

January 4, 2018 Thursday 11

8. MPI to file and serve written

submissions

January 5, 2018 Friday 12

9. Interveners to file and serve written

submissions

January 9, 2018 Tuesday 14

10. MPI to file and serve written reply

submissions

January 10, 2018 Wednesday 15

11. Board issues Order January 15, 2018 Monday 18


Page 10 of 12

SCHEDULE "C"

PROCEDURES TO BE FOLLOWED IN THE

MANITOBA PUBLIC INSURANCE CORPORATION

2018/19 APPLICATION FOR INTERIM VEHICLES FOR HIRE PREMIUM RATES

1. The Application for Interim 2018/19 Vehicles for Hire Premium Rates filed by the

Corporation shall proceed as a written hearing on an expedited basis.

2. All contents of the Application for Interim 2018/19 Vehicles for Hire Premium

Rates and responses to Information Requests shall be confirmed by sworn or

affirmed affidavit.

3. All information requests are to be filed in the prescribed form (attached hereto as

Schedule "D") and responded to using the prefixes as assigned by the Board

when Interveners are registered (set out in the body of the Order). The party

requesting information is to use firstly their prefix followed by the prefix of the

party being asked e.g. PUB/MPI, etc. Interrogatories are to be numbered

sequentially through 1st and 2nd rounds, e.g. PUB/MPI 1-3, PUB/MPI 2-7.

4. The Board’s Rules of Practice and Procedure (available on the Board's website)

dealing with the awarding of costs will apply to all matters before the Board.

5. The Board indicates its willingness to be available for any problems that may

arise during the exchange of information at any time, such time to be arranged

through Board Counsel.


Page 11 of 12

6. Seven (7) paper copies of material are to be submitted to the Board’s offices and

three (3) copies are to be submitted to Board Counsel at the following address:

Attention:

Kathleen McCandless and Robert Watchman, Pitblado LLP, 2500 – 360 Main

Street, Winnipeg, MB R3C 4H6.

7. Electronic copies of all material including the evidence of parties, are required to

be submitted to the Board’s e-mail address: [email protected] Where

schedules or other attachments accompany an electronic file, that filing must be

discrete and include only the item and schedules to which each refers. The

electronic files shall be named in accordance with their parties prefix. All

electronic filings shall be in Adobe Acrobat format, with protection securities

allowing printing, content copying, content copying for accessibility and page

extraction.


Page 12 of 12

SCHEDULE "D"

INFORMATION REQUEST TEMPLATE

Manitoba Public Insurance 2018/19 Application for

Interim 2018/19 Vehicles for Hire Premium Rates

XXX/XXX X-X

Volume and

Chapter: Page No.:

Topic:

Subtopic:

Issue:

PREAMBLE TO IR (IF ANY):

QUESTION:

RATIONALE FOR QUESTION:

RESPONSE:

RATIONALE FOR REFUSAL TO FULLY ANSWER THE QUESTION:

Optional Applicant Logo



Order No. 11/18

MANITOBA PUBLIC INSURANCE CORPORATION (MPI OR THE CORPORATION):


January 15, 2018

BEFORE: Irene A. Hamilton, Acting Chair Robert Vandewater, B.A., FCSI, CPA (Hon), CA (Hon), KStJ., C.D.,Member Carol Hainsworth, Member

Order No. 11/18 January 15, 2018

Page 2 of 25

Table of Contents

1. EXECUTIVE SUMMARY....................................................................................... 3

2. PROCEDURAL HISTORY .................................................................................... 3

3. THE APPLICATION .............................................................................................. 5

3.1. Principles for the Rating Model .......................................................................... 5

3.2. VFH Rating Model ................................................................................................ 7

3.3. Basic Coverage ................................................................................................... 8

3.4. Rate Setting Framework ..................................................................................... 9

3.5. Passenger VFH .................................................................................................... 9

3.6. Taxicab VFH ....................................................................................................... 10

3.7. Limousine Vehicles for Hire ............................................................................. 11

3.8. Accessible VFH ................................................................................................. 13

3.9. Future GRAs ...................................................................................................... 14

3.10. Final Determination of 2017/18 and 2018/19 VFH Rates................................. 15

4. CAC POSITION .................................................................................................. 15

5. BOARD FINDINGS ............................................................................................. 17

6. IT IS THEREFORE ORDERED THAT: ............................................................... 22

7. IT IS THEREFORE RECOMMENDED THAT: .................................................... 25


Page 3 of 25

1. EXECUTIVE SUMMARY

The Public Utilities Board of Manitoba (Board) hereby approves the Application of

Manitoba Public Insurance (MPI or the Corporation) for interim 2018/19 vehicles for hire

premium rates.

This Order grants to MPI approval of its rates on an interim basis only, recognizing the

urgency of the need for rates to be in place when The Local Vehicles for Hire Act, S.M.

2017, c. 36 comes in to force on February 28, 2018. MPI shall seek final approval of

vehicles for hire rates for service through its usual General Rate Application (GRA)

process. In the 2019 GRA, parties granted standing will have a full opportunity to test

the evidence on the rates, and MPI shall refund or collect any variance between the

Board's interim and final determination of rates for service on a customer-by-customer

basis.

The Board finds that Transportation Network Companies (TNCs) are a new business

model in North America, and accordingly, there is a lack of experience upon which

insurance rating models and rates can be developed. The Board has taken this into

account in approving the rates applied for by the Corporation. The Board has, however,

issued a number of directives to MPI, with the expectation that by the 2019 GRA MPI

will be in a position to provide further information and experience in order for MPI to

refine its rating model and rates.

2. PROCEDURAL HISTORY

On December 4, 2017, the Corporation filed a motion with the Board seeking an ex

parte hearing of the Application. The Corporation had indicated to the Board in its

motion that with the coming into force of The Local Vehicles for Hire Act on February

28, 2018, in order to provide compulsory insurance for vehicles for hire (VFH) by March

1, 2018, it would require an order on rates for VFH from the Board no later than January

15, 2018. This would enable MPI the opportunity to implement necessary system


Page 4 of 25

changes and to work with the Government of Manitoba to enact the required regulatory

amendments by March 1, 2018.

By Order 132/17, the Board declined to allow the Application to proceed ex parte, but

ordered that the Application proceed as a written hearing on an expedited basis given

the urgency of the matter.

In accordance with Order 132/17, applications for Intervener status in the Application

were required to be filed with the Board on or before December 20, 2017. The Board

received one application for intervener status, from Consumers' Association of Canada

(Manitoba) Inc. (CAC). By Order 140/17, the Board granted intervener status to CAC.

In accordance with the procedure established by the Board in Order 140/17, one round

of Information Requests was issued to MPI on behalf of each of the Board and CAC.

Given the expedited nature of the hearing, CAC did not request to file written evidence

with the Board, but was provided the opportunity to file closing submissions, setting out

its position on the Application.

The Board also received written presentations from Uber Canada, Inc. (Uber) and from

two operators from the taxicab industry. Neither Uber nor the members of the taxicab

industry applied for intervener status in accordance with the Board's procedure.

Although their written presentations were reviewed by the Board, they were not

evidence before the Board in this Application.


Page 5 of 25

3. THE APPLICATION

In the Application, the Corporation sought interim approval of the following rates for

service effective March 1, 2018:

The premiums charged with respect to compulsory VFH rates for service,

effective March 1, 2018.

Interim VFH rates for service were requested for both the 2017/18 and 2018/19

insurance year, based on rates approved in Board Orders 162/16 and 130/17.

Changes to eligibility for vehicle premium discounts for VFH.

Waiving of service fees for change of insurance for VFH.

A mechanism for refunding/collecting any variance between interim and final

approved VFH rates for service, as determined through the 2019 GRA.

The Corporation proposed no changes to miscellaneous permits and certificates, driver

license premiums, or fleet rebates and surcharges.

3.1. Principles for the Rating Model

The Corporation stated that where possible, pricing of its policies in the Application was

based on known experience, and that pricing of future policies will incorporate claims

experience to ensure that customers are paying appropriate premiums. VFH policies will

be tracked in a separate pool to ensure there is no impact on other Basic customers.

MPI advised that it evaluated several rating models within the context of the compulsory

nature of the Basic insurance program. It reviewed rating models and pricing in Ontario,

Alberta and Quebec, and performed an initial scan of rating models used in the United

States. According to MPI, no industry standard has yet developed on insurance rating

models across jurisdictions for TNCs. In addition, coverage and pricing varies by

insurance company within and across jurisdictions.


Page 6 of 25

The Corporation determined that the rating models it reviewed, and which are used in

other Canadian jurisdictions, were not suitable to MPI given the compulsory nature of

the Basic insurance program.

MPI indicated that it selected a rating model that best satisfied the following criteria:

1. Is the rating model fair and equitable?

2. Is the rating model actuarially-based?

3. Is the rating model flexible enough to accommodate different regulatory

frameworks throughout the province as a result of The Local Vehicles for Hire

Act?

MPI deemed passenger vehicles and light trucks as eligible for the new VFH uses in

Manitoba.

The Corporation also advised that, to streamline the registration process and system, it

would discontinue the registration classes used for existing Taxis, Limousines and

Liveries. In the current scheme, the "X-Plate" registration class is comprised of four

classes and issued license plates beginning with X: Taxicabs, City Liveries, Limousine

Liveries, and Country Liveries. The Corporation advised that the X-Plate registration

classes would be expired and no longer issued after April 30, 2018. All VFH vehicles

would be issued standard plates.


Page 7 of 25

3.2. VFH Rating Model

In the Application, MPI proposed four categories for the VFH Rating Model:

1. Taxicab VFH

2. Limousine VFH

3. Accessible VFH

4. Passenger VFH

The premiums for each category of VFH were established separately. The insurance

premiums would be based on four defined time bands, also referred to as "Levels".

Each of the four categories of VFH would have the same four time bands available to

them, with customers being able to self-select any combination of the four time bands.

Customers would have anywhere from Level 1 coverage to Level 4 coverage,

depending on the number of time bands purchased.

Premiums would be based on the number of time bands selected. Upon purchasing

four time bands, VFH drivers would have the ability to operate during on selected days

and times, up to 24 hours a day, seven days a week. The time bands are as follows:

Time Bands Time of Insured Commercial Operation A Monday through Friday 10:00 am to 3:00 pm and Sunday through

Thursday from 7:00 pm to 11:00 pm

B Nightly 11:00 pm to 7:00 am

C Monday through Friday 7:00 am to 10:00 am and 3:00 pm to 7:00 pm

D Friday 6:00 pm through Sunday 11:00 pm


Page 8 of 25

When a VFH is operated outside of its insured VFH time band, it would be insured for

non-commercial operation. If a VFH fare originated during an insured time band, but

the ride extended beyond the time band and was completed during a non-commercial

operation time, the insurance coverage for VFH operation would extend to cover the

duration of that fare.

The Corporation also proposed that there be no charge when changing the insurance

on a passenger vehicle or light truck to a VFH, although it may re-evaluate this

approach in future GRAs.

3.3. Basic Coverage

All VFH would have the following Basic insurance coverage, consistent with Basic's all-

purpose Passenger Vehicle Coverage:

$200,000.00 Third Party Liability

$50,000.00 Minimum Insured Value

$500.00 deductible

Therefore, Taxicabs, Limousines and Livery Vehicles would have their Basic deductible

reduced by $100.00, from their current deductible level of $600.00.


Page 9 of 25

3.4. Rate Setting Framework

The Corporation set different rates for the four categories of VFH: Passenger VFH,

Taxicab VFH, Limousine VFH, and Accessible VFH.

As a result of staggered renewals, the Corporation noted that many customers will still

have rates from the 2017/18 policy year in effect at the time that the VFH insurance

uses come into effect. The Corporation therefore prepared 2017/18 equivalent rates for

each of the new insurance uses. The methodology utilized for those rates was identical

to the methodology used to calculate the 2018/19 rates (as set out below), but using

2017/18 Board-approved rates.

3.5. Passenger VFH

The rate setting framework for the Passenger VFH would apply to two categories of

Passenger VFH:

Passenger VFH (passenger vehicle): a vehicle for hire, which is a passenger

vehicle and not a taxicab, limousine, accessible vehicle for hire, or a vehicle

owned or operated by or on behalf of a municipality to provide public

transportation services; and

Passenger VFH (truck with 4,499 kg GVW or less): a vehicle for hire that is a

truck with a gross vehicle weight of 4,499 kg or less and a body style as

described in Schedule AA of the Automobile Insurance Certificates and Rates

Regulation, M.R. 23/2017 under The Manitoba Public Insurance Act.

This is a rating class that currently does not exist and has never previously existed in

Manitoba. Therefore, the Corporation advised, it has no internal data to support its

ratemaking. The Corporation also advised that the current Taxi/Livery passenger

vehicle insurance use would not be a good representation of a loss exposure for this

rating classification.


Page 10 of 25

For the Passenger VFH category, the Corporation employed a jurisdictional scan of

VFH rates in other jurisdictions, and found that in Alberta, Ontario and Quebec the

average VFH rate is approximately 8% to 25% higher than the all-purpose rate. The

Corporation then judgmentally set the Passenger VFH rate for Level 4 coverage (all four

time bands) at 20% above the current Private Passenger All-Purpose rate for the

corresponding vehicle type and rate group. The rates would then decline incrementally

by 5 percentage points based on the level of coverage:

Number of Time Bands

Rate

1 All-Purpose rate + 5%




3.6. Taxicab VFH

The Corporation defined this category of VFH as a VFH that is a passenger vehicle

equipped with a taximeter. Taxicabs would be able to select time bands based on when

they operate, and would be able to receive Driver Safety Rating (DSR) vehicle premium

discounts if registered as an individual customer.

The Corporation indicated there would be an as yet undetermined reduction in loss

exposure for Taxicabs as a result of competition from Passenger VFHs. The

Corporation also indicated that the exposure for Taxicabs would be greater than the All-

Purpose Passenger vehicle use for the same vehicle. The Corporation was able to

incorporate several decades of taxi claims experience currently used to set the

Taxi/Livery passenger vehicle rates in order to support its ratemaking.


Page 11 of 25

The Corporation set the Taxicab VFH base rate at Level 4 equal to the Board-approved

2018 Taxi/Livery Passenger Vehicle Base Rate.

To determine the base rates for Levels 1-3, the Corporation performed a percentage

weighting between the 2018 approved Taxi/Livery Passenger Vehicle Base Rate and

the average All-Purpose Passenger vehicle base rate for the four most recent model

years. MPI then compared the blended rates for Levels 1, 2 and 3 to the blended rate

for Level 4 to determine the percentage reduction for the lower levels.

For example, the Territory 1 rates for Taxicab VFH at Levels 1-4 would be initially

calculated as follows, before rounding:

# of Levels Purchased

Territory 1 Taxi

Base Rate

Taxi Weight

Territory 1, All Purpose, Newest 4

Model Years, Average Base

Rate

All Purpose Weight

Blended Rate

4 $10,358

100% $1,882 0% $10,358

3 $10,358

75% $1,882 25% $8,239

2 $10,358

50% $1,882 50% $6,120

1 $10,358

25% $1,882 75% $4,001

The Corporation advised that to recognize that Taxicab VFH use may have lower loss

exposure than current Taxicab use, it judgmentally assumed that the availability of DSR

vehicle premium discounts and the reduction in the Basic deductible would offset this

reduced loss exposure.

3.7. Limousine Vehicles for Hire

The Corporation defined this category of VFH as a VFH that is a passenger vehicle

having an extended wheel base or design as a luxury or specialized passenger vehicle

that is not equipped with a taximeter and operated for hire by a limousine or private car

service.


Page 12 of 25

Limousine VFH would be able to select time bands based on when they operate and

would be eligible for DSR vehicle premium discounts if registered as an individual

customer. The Corporation advised that the current Limousine rates are flat-rated by

Territory, based on their historical loss experience. Similar to Taxicabs, the Corporation

assumed that there would be some loss of market share as a result of the introduction

of Passenger VFH. The Corporation had several decades of Limousine claims

experience that were used to set Limousine all-uses rates.

For Territory 1, the Corporation set the Limousine VFH base rate at Level 4 equal to the

Board approved 2018 Limousine All Uses Base Rate. Similar to the Taxicab category,

to determine the base rates for Limousine VFH for Levels 1 to 3, the Corporation

performed a percentage weighting between the 2018 Approved Limousine All Uses

Base Rate and the average All-Purpose Passenger Vehicle Base Rate for the four most

recent model years. MPI then compared the blended rates for Levels 1, 2 and 3 to the

blended rate for Level 4 to determine the percentage reduction for the lower levels.

For example, the rates for Limousine VFH at Levels 1-4 would be initially calculated as

follows, before rounding:


Territory 1 Limo

Base Rate

Limo Weight

Territory 1, All Purpose, Newest 4

Model Years, Average Base

Rate

All Purpose Weight

Blended Base Rate

4 $3,203

100% $1,882 0% $3,203

3 $3,203

75% $1,882 25% $2,873

2 $3,203

50% $1,882 50% $2,543

1 $3,203

25% $1,882 75% $2,212


Page 13 of 25

For all other Territories, the Corporation noted that there are currently fewer than 30

Limousines in rural territories and it assumed that the overall loss exposure would not

change. Accordingly, to determine rates, the Corporation judgmentally assumed that a

5% rate reduction from the Limousine VFH rate at Level 4 coverage was appropriate for

each decrease in Limousine VFH Level. Based on this assumption, MPI set the

Limousine VFH base rates at each level as a percentage of the current Limousine All

Uses base rate, such that the average of the four Levels was equal to the current

Limousine All Uses base rate:


Proposed Percentage of Limos

Base Rate 4 107%

3 102%

2 98%

1 93%

Average 100%

The Corporation also judgmentally assumed that the higher rates for Limousine VFH at

Levels 3 and 4, combined with the loss prevention incentives of the DSR, would offset

the loss in revenue from the availability of DSR vehicle premium discounts and a

decrease in the basic deductible for limousines.

3.8. Accessible VFH

The Corporation defined Accessible VFH as passenger vehicles equipped with a

wheelchair ramp or lift operated for the transportation of persons who use a wheelchair

or mobility aid and their escorts, but not vehicles owned or operated by or on behalf of a

municipality to provide public transportation services.

Accessible VFH would now be able to select time bands based on when they operate

and receive DSR vehicle premium discounts.


Page 14 of 25

MPI advised that the current rates for Wheelchair Livery Bus are flat-rated by declared

value, based on their historical loss experience. This insurance use is only applicable to

accessible vehicles in Territory 1. The Corporation assumed there would only be very

minor changes in loss exposure for Accessible VFH, because of the unique nature of

the insurance use. It has several decades of Accessible vehicles claims experience

that is used to set Wheelchair Livery Bus rates.

In proposing rates for Territory 1 for Accessible VFH, the Corporation assumed that the

overall loss exposure would not change. It judgmentally assumed that a 5% rate

reduction from the Accessible VFH at Level 4 coverage was appropriate for each

decrease in Accessible VFH Level. Based on this assumption, the Corporation then set

the Accessible VFH base rates at each Level as a percentage of the current Wheelchair

Livery Bus base rate such that the average of the four time bands was equal to the

current Wheelchair Livery Bus base rate:


Proposed Percentage of

Wheelchair Livery Bus Base Rate

4 107%

3 102%

2 98%

1 93%

Average 100%

The Corporation also judgmentally assumed that the higher rates for Accessible VFH at

Levels 3 and 4, combined with the loss prevention incentives of DSR, would offset the

loss in revenue from the availability of DSR vehicle premium discounts and the

decrease in the deductible for Accessible VFH.


Page 15 of 25

As rates are not currently available for Wheelchair Livery Bus for Territories 2, 3 and 4,

in order to set rates for Accessible VFH in those territories, the Corporation applied the

territory relativities for the Public Major Class as presented in the 2018 GRA.

3.9. Future GRAs

With respect to setting rates in future GRAs, MPI proposed that it would use the

currently approved Board ratemaking methodology to adjust the required rates for each

of the VFH uses, and then perform a separate relativity calculation within each of the

VFH to determine the relative rates by time band use.

3.10. Final Determination of 2017/18 and 2018/19 VFH Rates

The Corporation proposed that the final determination of VFH rates take place as part of

the 2019 GRA, in which MPI will bring an application for 2017/18 and 2018/19 rates for

service as well as 2019/20 VFH rates for service. The Board's final determination on

2017/18 and 2018/19 rates would be contained in the 2019 GRA Order. Any variance

between interim and final approval rates could be rebated or collected, pursuant to the

Corporation's automated process to trigger a "re-rating" of an insurance policy without

requiring a customer visit to a broker or service centre.

If the Board were to approve final VFH rates for 2017/18 and 2018/19 insurance years

differing from those approved in this Order, MPI would identify all VFH customers and

initiate a re-rating of the insurance policy.

4. CAC POSITION

Considering the short time frame within which the Board must approve rates for VFH,

CAC recommended that the Application be approved. In the interim, and until a final

determination is made by the Board following the 2019 GRA, CAC was of the view that

the Corporation's proposal was reasonable, bearing in mind that it provides for the

ability to refund or charge additional premiums if necessary.


Page 16 of 25

CAC advised that it was satisfied that the Application met the criteria of being fair and

equitable, actuarially-based, and flexible enough to accommodate the different

regulatory frameworks in Manitoba.

CAC was nevertheless of the view that there are a number of issues that should be

reviewed in further detail in the 2019 GRA before final approval is granted to the

insurance rating model for VFH. Those issues include:

The interplay between The Local Vehicles for Hire Act, the regulations and the

insurance rating model;

Rates for Taxicab VFH compared to Passenger VFH;

The financial impact of the VFH rating model on MPI;

DSR premium discount impacts;

Information technology costs associated with adapting certain of MPI's

technology platforms to accommodate VFH transactions;

Forecasting of claims incurred;

Road safety and loss prevention, particularly related to safety and training

standards and VFH operating in Manitoba;

Monitoring of industry standards and best practices; and

Stakeholder engagement.


Page 17 of 25

In reply to CAC's submissions, MPI recognized that other rating models could be used

and that relative rate by level and sub-category within the VFH pool will eventually be

adjusted based on actual claims experience. As a result, the Corporation did not object

to a number of the directions proposed by CAC. MPI did, however, express reservations

about the appropriateness of an examination of the interplay between The Local

Vehicles for Hire Act, the regulations and the insurance rating model in the context of a

GRA.

5. BOARD FINDINGS

This interim Application presents a number of challenges given the recent introduction

of TNCs in Canada, the lack of industry standards on VFH insurance rating models, the

lack of VFH claims experience and the compulsory nature of Basic insurance.

It is to be noted, however, that the Application is for approval of VFH rates on an interim

basis effective March 1, 2018, pending further consideration and final approval pursuant

to the 2019 GRA. In the 2019 GRA there will be an opportunity for all interested parties

to apply for standing, and there will be a more detailed examination of the principles and

issues associated with VFH insurance to ensure just and reasonable rates.

Further, as provided in the Application, the Corporation proposes that any variance

between rates set pursuant to this Interim Order and the final rates approved in the

2019 GRA will be accurately refunded to or collected from the affected ratepayers.

The Board also notes that CAC Manitoba, the sole intervener, recommends approval of

the Application on an interim basis in anticipation that these matters will be more fully

addressed before the applicable rates receive final approval pursuant to the 2019 GRA.

The jurisdictional scan performed by the Corporation demonstrates that a number of

different rating models are possible. The Board accepts the Corporation's evidence that

it is not aware of any rating models currently adopted by a comparable public insurer.


Page 18 of 25

Taking the foregoing into account, the Board hereby approves the Application as filed,

on an interim basis.

As further detailed below, however, the Board also directs the Corporation to take a

number of steps to ensure the necessary procedures are in place for the appropriate

collection of data for future rate applications and, in particular, to permit future

adjustment to the rating model and set rates for all categories of VFH on an actuarially

indicated basis.

Given the lack of internal and external data to support ratemaking at the present time,

the Board finds that it is reasonable for the Corporation to make judgments with respect

to the appropriate rates as among VFH categories, "Levels" of coverage and Territories.

While it is clear to the Board that the currently available data is incomplete, the Board

anticipates that more detailed information will be available for the 2019 GRA.

Accordingly, the Board directs the Corporation to develop and report on a plan for the

collection of data specific to the VFH pool, to be filed with the Board in the 2019 GRA.

The plan the Corporation is to develop will include collection of information as to:

i) A new VFH insurance use pool so that experience suitable for ratemaking can

be tracked separately from other Basic vehicle classes;

ii) Tracking of ratemaking experience (e.g., exposures, premiums, and claim

counts and amounts) within the VFH pool, separated by each sub-category

within the VFH pool (e.g., use category, number of time bands, territory), as

well as separated by each time band;

iii) Forecasting of claims incurred for the VFH pool; and

iv) A means of allocating to the appropriate time band those claims occurring

during any overlap of time bands in which the customer has selected both of

the overlapping time bands.


Page 19 of 25

The Board accepts the reasons stated by the Corporation for the proposed changes to

the availability of DSR vehicle premium discounts and the Basic deductible for

Taxicabs, Limousines and Livery Vehicles, which are that greater competition due to the

introduction of Passenger VFH will lower the loss exposure for vehicles in these

categories. However, the financial impact of these changes and implications for the rest

of Basic can only be estimated at this time, again due to lack of experience with the

VFH business model. Accordingly, while the Board has approved these changes, it will

require that in the 2019 GRA the Corporation file information on the financial impact of

these changes to the Corporation and the effect on Basic ratepayers.

Further, while the Application as approved will permit the waiving of service fees for

customers who make a change to their insurance policies for VFH, the Board cautions

that the number and frequency of such changes is as yet unknown. Should the number

and frequency of such changes be significant, this cost may ultimately have an impact

on Basic ratepayers. The Board therefore directs that the Corporation gather data on

the number and frequency of changes made to insurance policies for VFH and provide

a report in that regard in the 2019 GRA.

The Board is concerned with respect to the financial impact of the provision of VFH

insurance and, in particular, that such insurance not be subsidized by other Basic

customers. The Corporation has advised that no service fees will be charged to facilitate

transition to the new VFH insurance framework. It is clear, however, that additional

costs will be incurred in order to properly administer and monitor the VFH pool.


Page 20 of 25

Accordingly, the Board directs that in the 2019 GRA, the Corporation provide

information as to the total cost resulting from the VFH rating model. The total cost

information shall include, but will be not be limited to:

i) The financial impact of changes on the Corporation's pro forma financial

forecast;

ii) Driver safety rating premium discounts;

iii) Reduced deductible from $600.00 to $500.00 for taxicabs, limousines and

accessible vehicles for hire;

iv) One-time and ongoing information technology costs related to upgrading or

modifying the AOL and CARS programs to accommodate VFH; and

v) Broker commission and service fees relating to transactions associated with

vehicle for hire registration and time band selection.

The Board finds that there is a significant difference in between rates for the Passenger

VFH category and the Taxicab VFH category. The Corporation should be able to

demonstrate that it will be able to collect the necessary data to ensure in future rate

applications that the differences in the rates for the Passenger VFH and Taxicab VFH

are actuarially-based. The Board accepts CAC's submission that the issue of rates as

between the Passenger VFH and Taxicab VFH ought to be explored further in the 2019

GRA. The Board therefore directs that in the 2019 GRA, the issue of Passenger VFH as

compared to Taxicab VFH be reviewed, along with the issue of whether, for insurance

purposes, the Taxicab VFH category should be eliminated such that Taxicabs would fall

within another VFH use category.

Approving the Application, the Board has approved the mechanism to be applied by the

Corporation in order to re-rate individual insurance policies for VFH in the event that

there is a variance between the rates hereby approved on an interim basis and the rates

approved in the 2019 GRA. The Board is of the view that VFH insurance customers


Page 21 of 25

must be informed at the time of purchase of the VFH policy of the possibility of an

increase or reduction in premium following the Board's order after the 2019 GRA. The

Board therefore directs the Corporation to inform vehicles for hire customers, in

advance of placement of coverage, of the possibility of a refund or the collection of

additional premiums due to a re-rating resulting from the final approval of rates for

service for VFH through the 2019 GRA.

The Corporation filed evidence with the Board in this Application regarding rating

models and rates for TNC insurance across jurisdictions. As TNCs are a new

phenomenon, the Board finds that further information regarding best practices and

standards of the TNC, as well as information from stakeholders, would be beneficial for

further review in the 2019 GRA, in order to inform the determination of just and

reasonable rates. The Board therefore directs the Corporation to monitor best practices

and standards of the TNC industry and present the results of its monitoring in the 2019

GRA. In addition, the Board directs that in the 2019 GRA the Corporation file a report on

engagement that it has conducted relating to VFH with any stakeholders such as the

City of Winnipeg, other municipalities, TNCs, representatives of the taxicab industry,

consumer groups and disability groups.

CAC Manitoba expressed a number of concerns with respect to road safety and loss

prevention in respect of both drivers and clients of vehicles for hire. In particular, it

expressed concerns with respect to safety and training standards for drivers. The Board

accepts that the introduction of TNCs into Manitoba may create additional risks or

considerations with respect to road safety. The Board points out that in Order 130/17, it

directed that a Technical Conference take place early in 2019 to examine a number of

road safety and loss prevention issues. The Board finds that the issues of:

i) Safety for drivers and clients of VFH;

ii) Safety and training standards for all VFH drivers; and

iii) Safety issues relating to persons with disabilities and VFH


Page 22 of 25

would all be appropriately included within the 2019 Technical Conference, and

accordingly directs that these issues be included in the agenda for the 2019 Road

Safety Technical Conference.

With respect to the 2019 GRA, the Board also points out that in Order 130/17, the Board

indicated that the issue of road safety and loss prevention would not be examined in the

same level of detail as it was in the 2018 GRA. The Board directs, however, that the

road safety information filed in the normal course by the Corporation in the 2019 GRA

include information regarding emerging road safety issues as a result of the introduction

of TNCs in Manitoba.

Lastly, CAC raised the issue of the fairness of safety and training requirements for

drivers of vehicles for hire as one of its concerns. The Board recommends that the

Government of Manitoba conduct a review of minimum standards and licensing

requirements for drivers in all VFH categories.

6. IT IS THEREFORE ORDERED THAT:

6.1. The Rates for Service for vehicles for hire for the 2017/18 and 2018/19 insurance

years, as set out in Appendix 1 and Appendix 2 to the Vehicles for Hire 2018 Interim

Application filed by Manitoba Public Insurance on December 15, 2017, BE AND

HEREBY ARE APPROVED on an interim basis, effective March 1, 2018.

6.2. The Corporation shall apply for final Rates for Service for vehicles for hire for the

2017/18 and 2018/19 insurance years in the 2019 General Rate Application.

6.3. The Corporation shall refund or collect any variance between interim Rates for

Service hereby approved and the Rates for Service finally approved through the 2019

General Rate Application (GRA).

6.4. Vehicles for hire in all categories of the vehicles for hire pool shall be eligible for

Driver Safety Rating vehicle premium discounts if registered by individual customer.


Page 23 of 25

6.5. The waiving of service fees for changes of insurance coverage for vehicles for

hire BE AND HEREBY IS APPROVED.

6.6. The Corporation shall inform vehicles for hire customers, in advance of

placement of coverage, of the possibility of a refund or the collection of additional

premiums due to a re-rating resulting from the final approval of Rates for Service for

vehicles for hire through the 2019 GRA.

6.7. The Corporation shall develop and report on a plan for the collection of data

specific to the vehicles for hire pool and shall file the report in the 2019 GRA. The plan

the Corporation is to develop will include collection of information as to:

6.7.1. A new vehicles for hire insurance use pool so that experience suitable for

ratemaking can be tracked separately from other Basic vehicle classes;

6.7.2. Tracking of ratemaking experience (e.g., exposures, premiums, and claim

counts and amounts) within the vehicles for hire pool, separated by each

sub-category within the vehicles for hire pool (e.g., use category, number

of time bands, territory), as well as separated by each time band;

6.7.3. Forecasting of claims incurred for the vehicles for hire pool; and

A means of allocating to the appropriate time band those claims occurring

during any overlap of time bands in which the customer has selected both

of the overlapping time bands.

6.7.4 The Corporation shall gather data on the number and frequency of

changes made to insurance policies for vehicles for hire and provide a

report in that regard in the 2019 GRA.


Page 24 of 25

6.8. In the 2019 GRA, the Corporation shall provide information as to the total cost

resulting from the vehicles for hire rating model. The total cost information shall include,

but will be not be limited to:

6.8.1. The financial impact of changes on the Corporation's pro forma

financial forecast;

6.8.2. Driver safety rating premium discounts;

6.8.3. Reduced deductible from $600.00 to $500.00 for taxicabs, limousines

and accessible vehicles for hire;

6.8.4. One-time and ongoing information technology costs related to

upgrading or modifying the AOL and CARS programs to accommodate

vehicles for hire; and

6.8.5. Broker commission and service fees relating to transactions associated

with vehicle for hire registration and time band selection.

6.9. In the 2019 GRA, the issue of Passenger VFH insurance rates as compared to

the Taxicab VFH insurance rates be reviewed.

6.10 In the 2019 GRA, the Corporation shall examine the issue of whether, for

insurance purposes, the Taxicab vehicles for hire category should be eliminated such

that Taxicabs would fall within another vehicles for hire use category.

6.11. The Corporation shall monitor best practices and standards of the TNC industry

and present the results of its monitoring in the 2019 GRA.

6.12. In the 2019 GRA, the Corporation shall file a report on engagement that it has

conducted relating to vehicles for hire with any stakeholders such as the City of

Winnipeg, other municipalities, TNCs, consumer groups, representatives of the taxicab

industry and disability groups.


Page 25 of 25

6.13. Included among the issues to be examined in the 2019 Road Safety Technical

Conference directed in Order 130/17 shall be:

6.13.1. Safety for drivers and clients of VFH;

6.13.2. Safety and training standards for all VFH drivers; and

6.13.3. Safety issues relating to persons with disabilities and VFH.

6.14. The road safety information filed by the Corporation in the 2019 GRA include

information regarding emerging road safety issues as a result of the introduction of

TNCs in Manitoba.

7. IT IS THEREFORE RECOMMENDED THAT:

7.1. The Government of Manitoba conduct a review of minimum standards and

licensing requirements for all drivers of vehicles for hire.




website at www.pub.gov.mb.ca.

THE PUBLIC UTILITIES BOARD “Irene Hamilton” Acting Chair

“Darren Christle” Secretary

Certified a true copy of Order No. 11/18 issued by The Public Utilities Board

__________________________________ Secretary


VEHICLES FOR HIRE

2018 INTERIM APPLICATION

Information Requests

January 4, 2018

INFORMATION REQUESTS FILING

Public Utilities Board

Consumers’ Association of Canada (Manitoba)

PUB (MPI)

January 4, 2018 2018 Vehicles for Hire Information Requests PUB (MPI) 1


PUB (MPI) 1

Volume and Chapter:

VFH.2.2 Page No.: 6

Topic: Principles for the Rating Model

Sub Topic:

Issue: Rating Across Jurisdictions

Preamble to IR (If Any):

The Corporation states: "Based on MPI's analysis of TNC by-laws and insurance rates

in Canada, no industry standard has developed on insurance rating models within or

across jurisdictions that currently permit operation of TNCs. Further, coverage and

pricing varies by insurance company within and across jurisdictions."

Question:

a) Please advise as to which Canadian jurisdictions the Corporation analyzed for

information on rating models and pricing.

b) Please provide descriptions of the rating models and pricing used in those

Canadian jurisdictions and discuss the relative merits of those approaches as

contrasted with the Corporation's proposed approach.

c) Did the Corporation review data from jurisdictions outside Canada?

i. If so, please provide descriptions of the rating models and pricing used in

those jurisdictions and discuss the relative merits of those approaches as

contrasted with the Corporation's proposed approach.

ii. If not, please explain why the Corporation limited its review to Canadian

jurisdictions.



Rationale for Question:

To better understand the principles applied by the Corporation in selecting the rating

model.

RESPONSE:

a) Rating models and pricing in Ontario, Alberta and Quebec were reviewed. These

jurisdictions are currently the only ones in Canada to permit the operation of

Transportation Network Company (TNC).

b) MPI developed and evaluated several rating models within the context of the

compulsory nature of Basic, and MPI’s intent to avoid cross-subsidization between

vehicles for hire and the rest of Basic. Rating models used in other Canadian

jurisdictions were not considered suitable within Manitoba’s public insurance

environment given the compulsory nature of Basic. Figures 1 and 2 present the

results of the scan.



Figure 1: Transportation Network Company (TNC) – Jurisdictional Insurance Comparison/Availability

Line ONTARIO

No. Insurance Provider Intact Aviva Northbridge Insurance Pembridge Insurance 1 TNC Companies Uber All Rideshare Lyft Ride co, InstaRyde,

Facedrive, ecoRides All Rideshare

2 Policy Type Blanket Individual (Endorsement) Blanket endorsement for Lyft

drivers Blanket Individual

(Endorsement) 3 Coverage Period From login to passenger

delivery From login to passenger



delivery N/A

4 Contact for Claim Uber Aviva Lyft Northbridge Insurance N/A 5 Policy Uber Policy

NPCF 6TN Endorsement

Lyft Policy

Northbridge Policy

6 Details • Automatically applies to all

Uber drivers regardless of personal auto policy/provider

• Maximum of 20 hours per week • Enhanced coverage on personal policy will extend to Lyft policy

• Automatic coverage but personal policy must allow for rideshare usage.

• N/A

7 • When not available to pick up rides, personal auto policy is in effect

• Contracted with a transportation network company

• No maximum on ridesharing hours

8

• 6 years minimum licensed (G2 or higher) driving experience in Canada or U.S.

• 6 years minimum licensed (G2 or higher) driving experience in Canada or U.S.

9

• Carries 8 people max. (7 passengers + driver)

• Carries 8 people max. (7 passengers + driver)

10

• No commercial use, such as delivery of goods, including food or courier services

• No commercial use, such as delivery of goods, including food or courier services

11 • Not registered as a taxi or limousine

• Not registered as a taxi or limousine

12 Coverage • Up to $2M TPL • Up to $2M TPL • Up to $2M TPL • Up to $2M TPL • N/A 13

• Standard AB • Standard AB • Standard AB • Standard AB

14

• $1,000 deductible for Comp/Collision paid by driver




15

• Family protection

• $1,500 Loss of use (post acceptance)

16 • No depreciation on new vehicle (post acceptance)



Figure 2: Transportation Network Company (TNC) – Jurisdictional Insurance Comparison/Availability

Line ALBERTA QUEBEC No. Insurance Provider Intact Northbridge Insurance Pembridge Insurance Intact 1 TNC Companies Uber TappCar All Rideshare

Uber

2 Policy Type Blanket Blanket Individual (Endorsement)

Blanket 3 Coverage Period From login to passenger delivery From login to passenger delivery N/A

From login to passenger delivery

4 Contact for Claim Uber Northbridge Insurance N/A

Uber 5 Policy Intact Uber Policy Northbridge Tapp Policy

Intact Uber Policy

6 Details • Automatically applies to all Uber drivers regardless of personal auto policy/provider

• N/A • N/A

• Automatically applies to all Uber drivers regardless of personal auto policy/provider

7 • When not available to pick up rides, personal auto policy is in effect

• When not available to pick up rides, personal auto policy is in effect

8 Coverage • Up to $2M TPL • Up to $2M TPL • N/A

• Up to $2M TPL

9

• Standard AB • $1,500 deductible All perils Loss of Use

• Standard AB

10


• Family Protection


11 • Family protection • Limited Waiver of Depreciation

• Family protection



MPI also contacted other jurisdictions to obtain the insurance cost of rideshares.

Figure 3 is the jurisdictional scan/comparison

Figure 3: Rideshare Cost Comparison

TNC Total Line

(Base Rate plus

No. Jurisdiction Base Rate* TNC Endorsement Endorsement) 1 British Columbia

2 Vancouver $2,530 Not established Not Available

3 Alberta

4 Calgary $3,251 $500-$800/year $3,751-$4,051/year 5 Edmonton $3,410 $500-$800/year $3,910-$4,210/year

6 Saskatchewan

7 (Regina & Saskatoon) $1,200 Not established Not Available

8 Ontario

9 Toronto $6,593 $1,000-$1,600/year $7,593-$8,193

10 Québec

11 (Montréal and Québec City)

$2,267 $190/year $2,457

12 Manitoba

13 14

Winnipeg $1,442 Not Applicable Passenger VFH Time Bands Selected

15

1- $1,514 16

2 - $1,586

17

3 - $1,658 18 4 - $1,730 19 *Base rate based on

20 1) 21-year-old male, claims and conviction free 21 2) 2017 rates based on 2010 Dodge Grand Caravan SE, $500 All Perils deductible, $2m third-party liability 22 See 2018 GRA, Volume I BMK Benchmarking, page 26



c) The Corporation performed an initial scan of rating models used in the United

States and the rating models are similar to those used in other Canadian

jurisdictions. None are designed to accommodate a compulsory Basic automobile

insurance model.



PUB (MPI) 2

Volume and Chapter:

VFH.2.2 Page No.: 6


Sub Topic:

Issue: Rating Across Jurisdictions


The Corporation states: "MPI developed and evaluated several rating models within

the context of the compulsory nature of Basic, and MPI's intent to limit cross-

subsidization between vehicles for hire and the rest of Basic."

Question:

a) Have the rating model and rate-setting framework selected by the Corporation

been used in any other jurisdictions reviewed by it?

b) If yes, please provide the rationale for the selection of that jurisdiction's rating

model and rate-setting framework.

c) If no, please advise why the Corporation has not chosen to follow a rating model

and rate-setting framework previously developed in another jurisdiction.


To better understand the justification for the rating model selected by the Corporation.

RESPONSE:

a) No.

b) Not applicable.



c) Currently in Canada, only Alberta, Ontario and Quebec allow ridesharing (vehicle

for hire) for compensation. Insurance for ridesharing vehicles in these jurisdictions

is provided by either individual endorsement or a blanket policy with the particular

Transportation Network Company. In all three jurisdictions, automobile insurance

is sold privately and, subject to limited accident benefits1 (injury), third party

liability coverage and tort action. First party physical damage coverage is optional

in all three jurisdictions.

The legislative scheme in Manitoba requires residents who wish to operate a motor

vehicle in Manitoba to register that vehicle and purchase universal compulsory

automobile insurance (Basic Insurance) which is primary to any other insurance

that may apply. Basic Insurance provides Personal Injury Plan Protection benefits

as well as third party liability and all perils physical damage coverage.

Alternative insurance models used in other jurisdictions would, if adopted in

Manitoba, result in coverage outside of the Basic Insurance. A consequence of

which would be that the premiums charged for vehicle for hire insurance would be

outside the jurisdiction of the Public Utilities Board. The Corporation submits that

it would not be in the public interest to intentionally design compulsory insurance

coverage for passenger vehicle operations that is outside of the Basic model and

outside of regulatory oversight.

The universal compulsory nature of the program does not contemplate, nor does

the legislation permit, that Basic compulsory insurance coverage may become

secondary, based on temporary (or part time) change in vehicle use from a

passenger vehicle to a vehicle for hire. Across the Basic compulsory program, the

rates charged for the vehicle are based upon the type of vehicle, its use, and its

location (territory). Basic coverage remains constant in all cases, and the only

change is in the rate charged, reflecting the use, type and territory of the vehicle.

Vehicle for Hire is a new use and it is appropriate that Basic rates are to be set for

that type/use.

1 With exception of Quebec, which has pure no-fault injury coverage



Use of an umbrella policy with a Transportation Network Company (TNC) or

individual endorsement are not applicable nor appropriate as compulsory coverage

under the Basic program. Providing Basic insurance to TNC’s through an umbrella

policy also creates the risk that individual operators would not incur their true

incremental cost of insurance, as they will under MPI’s proposed model that

accounts for vehicle type and driver safety. In addition, the use of an umbrella

policy would not be fair and equitable to existing vehicles for hire, such as taxis

and limos.

In summary, a vehicle is required to have Basic Insurance. The requirement to

hold the coverage and the obligation of the Basic coverage to respond as primary

in the event of a loss does not change based upon the use, type, or territory of the

vehicle.



PUB (MPI) 3

Volume and Chapter:

VFH.2.2 Page No.: 6

Topic: Rating Model

Sub Topic:

Issue: Rating Models Evaluated


MPI developed and evaluated several rating models within the context of the

compulsory nature of Basic against three success criteria.

Question:

Please provide a table listing each of the rating models that were evaluated, including

the one proposed, and indicate the relative merits of the models reviewed against the

model proposed on the three criteria:

a) Is the rating model fair and equitable?

b) Is the rating model actuarially based?

c) Is the rating model flexible enough to accommodate different regulatory

frameworks throughout the Province as a result of Bill 30?


To evaluate the merits of the proposed rating model against alternatives.

RESPONSE:

In light of the introduction of Bill 30 and developments within the vehicle-for-hire

industry in other jurisdictions in Canada, MPI initially examined nine insurance solution

models/options (outlined in CAC (MPI) 5). These options were presented and

evaluated at a conceptual level using nine criteria. From these nine options, the top



three models were selected for further evaluation and rated based on the three

criteria.

The Time Band Model can be applied equitably across all vehicles for hire (Taxis,

Limos, Passenger, Accessible) and it provides the greatest flexibility for Vehicle for

Hire (VFH) operators. This model is actuarially based in that the rates are/will be

reflective of the loss experience by VFH group, and the model prevents cross

subsidization between the VFH groups and/or the overall private passenger vehicle

pool. The Time Band Model aligns well with the principles of universal compulsory auto

insurance and will be able to evolve over time.

The Blended Rate Model would not be seen as fair and equitable, nor actuarially

based, as it

i. makes no accommodation to apply Driver Safety Rating (DSR)

discounts/surcharges to any sub-category of vehicles for hire,

ii. used taxi premiums as a part of the premium calculations for the TNC vehicle

for hire, and

iii. used one blanket base rate for vehicles for hire (no differentiation for typical

rate groups). The Blended Rate Model would not allow flexibility to

accommodate different regulatory frameworks throughout the Province.

The DSR Driver Premium Model would leverage certain aspects of the current DSR

system, but since surcharges would be based on driver premium there may be

uncertainty around the alignment to actuarial principles of universal compulsory

insurance. This model is complex and costly to implement, has challenges from claims

administration, significant regulatory amendments, would introduce lack of symmetry

with other vehicle types and insurance uses, and would be difficult from a customer

communication perspective.



PUB (MPI) 4

Volume and Chapter:

VFH.2.2 Page No.: 7


Sub Topic:

Issue: Consistency of Rating Model


The Corporation states: "The proposed rate model is fair and equitable in that it

applies consistently to taxis, TNCs, and other vehicles for hire. All vehicles for hire

operators will have the flexibility to select up to four time bands depending on when

and how frequently they intend to offer vehicle for hire services."

Question:

a) Are there any statistics available on the relative risk of ride-sharing services such

as Uber as compared to that of taxicabs? If so, please produce.

b) Are there any statistics available on (1) the times of day and (2) the number of

hours per day that drivers for ride-sharing services such as Uber typically operate?

If so, please produce.

c) Did the Corporation incorporate any statistics gathered in (a) or (b) in preparing its

proposal? If so, please elaborate on how those statistics were incorporated into the

proposal. If not, please advise as to why not.


To provide additional context for the VFH application.



RESPONSE:

a) MPI is not aware of any statistics comparing the relative risk of ride-sharing

services compared to taxicabs, other than the rating differentials identified from

other jurisdictional models.

b) MPI is aware of a study completed by the National Bureau of Economic Research

entitled “The Value of Flexible Work: Evidence from Uber Drivers” where Uber

drivers’ work schedules were analyzed to determine the value of flexibility in

drivers’ schedules. The study is available at: http://www.nber.org/papers/w23296

The Corporation was also able to obtain the informal statistic via Lyft and Uber that

‘most’ ride-sharing services operators provide the service on average 8 to 10 hours

per week.

c) The study did not influence the development of the time band model and the

Corporation did not formally incorporate statistics gathered in the study in

preparing its proposal. However, the results of the study do support the time band

model in that drivers benefit from flexibility when operating as a vehicle for hire.



PUB (MPI) 5

Volume and Chapter:

VFH.3.5 Page No.: 22

Topic: Rate-Setting Framework

Sub Topic:

Issue: How Rates Will Be Set in Future GRAs


The Corporation states: "MPI will use the currently approved PUB ratemaking

methodology to adjust the required rates for each of the vehicles for hire uses…MPI

will then perform a separate relativity calculation within each of these vehicles for hire

to determine the relative rates by Level…By setting rates based on the overall vehicles

for hire experience in each VFH use (rather than for each level separately) there will

be more credible data for which to modify rates."

Question:

a) By what year does the Corporation expect to have sufficient experience on each of

the VFH classes (i.e., Passenger, Taxicab, Limousine, Accessible) in order to set

rates based on experience?

b) When VFH rates are set based on experience, will this analysis of experience

include all classification dimensions associated with VFH rating?


To establish PUB expectations for actuarially set VFH rates.



RESPONSE:

a) The proposed rates for Taxicab, Limousine, and Accessible Vehicles for Hire (VFH)

classes are based on the existing rates for these classes with an adjustment to

account for the introduction of time bands, Driver Safety Rating (DSR), and

competition from Passenger VFH. MPI believes the rates for these classes, on an

overall basis, are reasonably close to the eventual experienced based rates under

the new VFH model. However, as experience data becomes available (i.e. in the

2020 GRA), MPI proposes to follow the approved Basic ratemaking methodology

for adjusting vehicle group relativities. This process ensures that at least 10% of

the weight will be given to experience in the rate relativity calculation in each GRA.

For Passenger VFH, MPI recognizes that there is no historical claims experience for

this rating classification. It is also uncertain how many vehicle units will exist in

this rating category. MPI proposes to follow the approved Basic ratemaking

methodology for adjusting vehicle group relativities, which would give at least 10%

weight to the Passenger VFH experience in each rate application. However, if

experienced based rates are observed to be significantly different from the initial

rates, MPI may come forward with a special rating adjustment that falls outside

the approved ratemaking methodology.

In regards to the relative rates between time bands within each of the VFH classes,

MPI also proposes to adjust these relativities based on experience. A proposed

methodology will be brought forward in the 2019 GRA; however, there will be no

actual claims experience available for ratemaking until the 2020 GRA.

b) Yes. Please see part (a)



PUB (MPI) 6

Volume and Chapter:

VFH.2.2, VFH.2.4 Page No.: 7, 10

Topic: Claims Experience

Sub Topic:

Issue: Claims by Time Period


The Corporation states:

"The declared time bands uses will be priced for risks based on current claims data."

"The insurance policies will be based on time bands permitting vehicles for hire operation."

Question:

a) Please provide, for the last five years, any available Basic claims experience

(frequency, severity, and total claims) and the corresponding Basic earned

exposures broken down by the four time bands set out in the application.

b) Please provide the relativities for the claims costs and claims counts between the

four time bands, with commentary on the how these relativities relate to the

proposed VFH time band rating relationships.





RESPONSE:

a)

Figure 1: Pleasure Passenger – Claims Incurred

Figure 2: Pleasure Passenger – Claims Count

Figure 3: All-Purpose Passenger – Claims Incurred

Figure 4: All-Purpose Passenger – Claims Count

LineNo. Time Band 2012 2013 2014 2015 2016 Total1 A 33% 35% 30% 32% 31% 32%2 B 8% 8% 13% 9% 10% 10%3 C 31% 32% 29% 32% 29% 31%4 D 29% 25% 28% 26% 29% 27%



Line

No. Time Band 2012 2013 2014 2015 2016 Total1 A 30% 29% 30% 30% 31% 30%2 B 11% 10% 11% 11% 12% 11%3 C 37% 38% 37% 36% 36% 37%4 D 22% 23% 23% 23% 21% 22%



Figure 5: Pleasure Light Truck – Claims Incurred

Figure 6: Pleasure Light Truck – Claims Count

Figure 7: All-Purpose Light Truck – Claims Incurred

Figure 8: All-Purpose Light Truck – Claims Count

Earned exposure by time band is not available as MPI does not currently insure

vehicles by time band.

Line


Line


Line


Line




b)

Figure 9: Percentage of Taxi/Livery Claims Incurred and Claims Counts by Time

Band – 2007 to 2017 loss years

The insured times of each time band were designed to accommodate the hours of

operation that vehicles for hire drivers might prefer, such as weekends, or evenings,

while balancing the increased level of exposure from operation between the four time

bands.

The time bands were selected such that each additional time band equates to

approximately 25% additional claims exposure. However, for rating purposes only the

number of time bands selected is relevant, rather than the specific time bands

selected. The relative rate by Level will eventually move to the appropriate amount

based on actual claims experience.

Line Claims Claims SelectedNo. Selected Time Bands Level Incurred * Counts * Relativity1 A 1 25% 30% 25%2 B 1 31% 15% 25%3 C 1 25% 32% 25%4 D 1 19% 23% 25%5 Level 1 Straight Average 25% 25% 25%

6 A, B 2 56% 45% 50%7 A, C 2 50% 62% 50%8 A, D 2 44% 53% 50%9 B, C 2 56% 47% 50%10 B, D 2 50% 38% 50%11 C, D 2 44% 55% 50%12 Level 2 Straight Average 50% 50% 50%

13 A, B, C 3 81% 77% 75%14 A, B, D 3 75% 68% 75%15 A, C, D 3 69% 85% 75%16 B, C, D 3 75% 70% 75%17 Level 3 Straight Average 75% 75% 75%

18 A, B, C, D 4 100% 100% 100%19 Level 4 Straight Average 100% 100% 100%

20 * For the period 2007 to 2017 – vehicle insurance use = taxi/livery



PUB (MPI) 7

Volume and Chapter:


Topic: Vehicle for Hire Rating Model

Sub Topic:

Issue: Time Bands


The proposed VFH rating model is based on the number of levels purchased rather

than the specific time bands being purchased.

Question:

Please elaborate on the Corporation's rationale for not varying the cost of coverage

with the expected exposure to risk by time band.



RESPONSE:

Since MPI does not have any experience data on drivers for the Transportation

Network Companies (TNC), our loss analysis was based solely on the taxi industry

experience. The time bands were established in such a way that each is similar in

exposure based on the taxi experience. With further review, the time bands were

intentionally adjusted to increasingly level the exposure from one time band to the

next.



In deciding how to implement the time bands MPI considered three key factors:

Ease of understanding

Flexibility (the customers’ ability to switch selected time bands)

Cost of implementation

If each time band had a different rate or cost it would be more difficult for Manitobans

to understand the model. Having a different rate for each individual time band would

create 15 different possible combinations a customer would have to assess in making

their buying decision. It could also potentially lead to misunderstanding about why one

time band is more or less costly than another time band. Therefore, by having the

same cost of coverage for each individual time band, MPI has made it easier for

customers to understand the model and make buying decisions.

If the rate or cost for each time band was different it would hinder the customers’

ability to switch selected time bands. Any time a customer wanted to consider

changing time bands they would need to speak to a broker to determine the pro rata

premium for each time band, calculate the differential to determine what the change

in premium would be, and then consider this additional factor in making their decision.

By having all time bands equally priced, a customer can make a decision to switch

bands without having to first contact a broker to determine the cost differential for the

balance of the insurance period and can take the cost factor out of their decision

making process.

Varying the rate for coverage under each time band would also have a significant

impact on MPI’s cost to implement. There are fifteen different potential combinations

in considering the purchase of between one and four time bands. If the rates are

different for each time band this means developing and implementing fifteen individual

rate tables rather than only four. There would be costs related to having almost four

times the number of rate tables developed and implemented.

As data accumulates for the various VFH insurance usages, MPI will monitor the

trends. If any of the time bands deviate too far from the ~25% of overall claims

incurred MPI will determine the action necessary. For example, if there is consistent



deviation across all insurance usages, MPI may have to adjust the time bands. If the

deviation is only for one insurance usage, MPI will have to determine the cause of the

deviation and may have to consider varying the cost of coverage with the expected

exposure to risk by time band for that specific insurance usage.



PUB (MPI) 8

Volume and Chapter:


Topic: VFH Rating Model

Sub Topic:

Issue: Time Bands


The proposed VFH rating model uses four time bands for VFH commercial operation

which include some overlap between time bands. The Corporation states “The

designed overlap in time between the Overnight and Weekends time bands also

provides further flexibility for customers who may not want to select more than one

time band.”

Question:

a) Please discuss the consequences of having overlapping time bands with respect to

the collection of experience by time band for the development of actuarially sound

rates in the future.

b) By way of example, please describe how a claim occurring between 6:00 and

7:00pm on a Friday evening would be assigned by time band for a VFH operator

who signed up for time bands C and D.

RESPONSE:

a) Since rates are determined based on the number of time bands purchased, not the

specific time bands, there is no consequence of having overlapping time bands for

actuarially sound rates.

b) The claims experience would fall under the rating of Level 2, since the customer

purchased two time bands.



PUB (MPI) 9

Volume and Chapter:

Page No.:

Topic: Alternative VFH Rating Approaches

Sub Topic:

Issue: Saskatchewan Auto Fund


It has been reported that Saskatchewan is developing the necessary legislation to

Transportation Network Companies to operate in that province. A spokesperson for

SGI was reported in Thompson’s World Insurance News as saying “the insurer has

looked at insurance approaches in other jurisdictions and found that basing insurance

rates on kilometres driven made the most sense to SGI”.

Question:

a) Has the Corporation had any communication with SGI with respect to VFH rating

models and pricing? If so, please provide a summary of the substance of the

communication with SGI.

b) Please provide the Corporation’s assessment of the relative merits of the declared

intent of SGI vs. the Corporation’s proposed approach to VFH rating models.



RESPONSE:

a) MPI did verbally share information with Saskatchewan Government Insurance

(SGI) representatives with respect to MPI’s proposed vehicle for hire insurance

premium models. At the time of the communication, both organizations were



beyond the ‘conceptual’ stages of developing their respective Vehicles for Hire

(VFH) rating models, therefore, it was purely an information sharing

communication versus a collaboration on developing a VFH insurance premium

model.

b) Based on a high level assessment of this publicly available information, MPI

identified the following concerns with SGI’s kilometer based model:

A monthly charge per driver per kilometer is not necessarily actuarially

sound for individual driver risks.

VFH drivers may not face the true incremental cost of insurance.

This model, if applied in the context of Manitoba’s legislative framework,

would not be fair or equitable to existing vehicles for hire (taxis and limos),

and could result in cross subsidization between Basic and the VFH pool.

MPI has determined that the model proposed in this interim application is

appropriate for Manitoba.



PUB (MPI) 10

Volume and Chapter:


Topic: Summary of Jurisdictional Review of VFH Premiums

Sub Topic:

Issue: Jurisdictional Comparison


Figure 2 on Page 14 of the VFH application shows Base Rates and TNC Endorsement

premiums for four major Canadian cities for Passenger Vehicles for Hire.

In a tort or partial no fault jurisdiction, the dominant TNC insurance coverage issue

relates to ensuring the VFH operator has sufficient Passenger Hazard Bodily Injury

Third Party Liability coverage to protect the interests of VFH passengers.

Question:

a) Please provide a table comparing the supplemental insurance coverage being

provided by the TNC Endorsement for each of the four Canadian cities shown vs.

what supplemental insurance coverage is being provided in Manitoba.

b) Please provide the source documentation for the cited Base Rates and TNC

Endorsement premiums.

c) Please discuss the relevance of VFH market pricing practices in Alberta (tort) and

Ontario (partial no fault) in the development of Manitoba (pure no fault) VFH

pricing.

d) Please describe the particular circumstances under which Basic Third Party Liability

Bodily Injury claims are triggered today, and the extent to which this exposure is

expected to change with the introduction of Vehicles for Hire.





RESPONSE:

a) Please see PUB (MPI) 1 for a summary of the insurance coverage currently

provided by insurers in Canada where Transportation Network Company’s (TNC)

are permitted. MPI’s model does not provide an endorsement to Vehicles for Hire

(VFH) drivers. Therefore, there is no supplemental insurance coverage offered by

MPI.

b) Please see 2018 GRA Volume I Benchmarking BMK.4.3.1, page 26 for the source of

the Base Rate. The Base Rate is based on:

1. 21-year-old male, claims and conviction free

2. 2017 rates based on 2010 Dodge Grand Caravan SE, $500 All Perils

deductible, $2m third-party liability

To determine the approximate TNC endorsement rates, insurance companies and

brokers in the various jurisdictions were contacted to obtain quotes.

c) Please see PUB (MPI) 2. Due to differences in compulsory motor vehicle insurance

coverage between jurisdictions and that rates charged for compulsory insurance in

Manitoba must reflect the vehicle use, a direct comparison of rates charged for

blanket polices to TNC and individual endorsements is not applicable.

However, as noted in the 2018 Vehicles for Hire Interim Application, Figure 2, page

14, individual TNC endorsements were approximately 8% to 25% higher than the

all-purpose rate from the applicable jurisdiction. This supported judgmentally

establishing a Passenger Vehicle for Hire rate for 24/7 use (all 4 time bands) at

20%. Please also see PUB (MPI) 1, Figure 3.



d) The Personal Injury Protection Plan (PIPP) provides comprehensive no-fault motor

vehicle accident bodily injury coverage to Manitoba residents and non-residents

deemed Manitoba residents (those injured in Manitoba registered vehicles while

the vehicle is being operated in Manitoba). Please also see CAC (MPI) 8 for further

discussion.

Basic third party liability bodily injury claims made against Manitoba policy holders

can occur if the Manitoban is operating their vehicle outside of Manitoba in a tort

jurisdiction and is at-fault for the motor vehicle accident that results in injuries to

others.

The introduction of VFH is not expected to alter the extent to which Manitobans

operate their vehicles outside of Manitoba today and as a result, is not expected to

impact the extent to which third party liability bodily injury claims are made

against Manitoba policy holders.



PUB (MPI) 11

Volume and Chapter:

VFH.2 Page No.: 4

Topic:

Sub Topic:

Issue: Claims Experience


The Corporation states: "Where possible, pricing of policies has been based on known

experience, and the price of future policies will incorporate claims experience to

ensure that customers are paying appropriate premiums. Vehicles for hire insurance

policies will also be tracked in a separate pool, ensuring there is no impact on the rest

of Basic’s customers."

Question:

a) Please elaborate on what information will be gathered to capture claims experience

for VFH insurance policies.

b) Please describe the steps to be taken to ensure there is no impact on other Basic

customers.



RESPONSE:

a) MPI will collect the same information on Vehicle for Hire (VFH) policy claims as it

does for all other policies. The claims experience for VFH classes will be tracked

separately, through the use of an additional field in the Enterprise Data

Warehouse. These separately tracked claims will form the ‘VFH pool’ that will be



used to set actuarially sound rates for VFH policies. Once a customer is a VFH

policy holder, all claims under that policy will fall into the VFH pool, and be isolated

from the rest of Basic’s customers. For example, a collision occurring outside the

VFH time bands will still be tracked within the VFH pool.

b) Apart from establishing a separate pool, as outlined above, MPI will continue to

employ its processes to ensure that claimants are correctly insured at the time of a

claim, for example, ensuring that VFH drivers are correctly insured under a VFH

policy, and under the appropriate sub category (passenger, taxi, limo, accessible).

These processes are similar to those already in place for detecting and ensuring

intact coverage for the date/time of loss, and adherence to all conditions (such as

vehicle use for purposes not intended under the policy).

Please see CAC (MPI) 1-10 for details on the cost of implement Information

Technology (IT) changes for VFH policies.



PUB (MPI) 12

Volume and Chapter:


Topic: Taxicab Vehicles for Hire

Sub Topic:

Issue: Driver Safety Rating Discounts


The Corporation states: "Taxis will now be able to receive Driver Safety Rating (DSR)

vehicle premium discounts, if registered as an individual customer. The deductible for

Taxis will decrease from $600 to $500."

Question:

Please indicate to what extent DSR revenues may change if current taxi drivers

register as individuals. To illustrate this, please indicate what the impact would be if

the take up of the change is 25% of the current taxi drivers and 50% of the current

taxi drivers.


To assess impact on Basic DSR revenues.

RESPONSE:

Per the 2018 rate model, Figure 1 below shows, by territory, the number of taxis and

the total premiums for taxis based on the 2018 PUB approved rates.



Figure 1: Taxis - Count and Premiums

Based on the Drive Safety Rating (DSR) level of the registered owner for taxis

registered to ‘Individuals’, the weighted average DSR discount, by territory, can be

determined per Figure 2 below.

Figure 2: Weighted Average DSR Discount for Taxis Registered to Individuals

Given the above information, number of taxis by territory and a weighted average

discount, and assuming that all taxis will purchase Taxi VFH Level 4, the impact on

2018 taxi vehicle premiums, by allowing taxis to be eligible for DSR vehicle premium

discounts, is shown in the following two tables.

Line Number of Taxis 2018 PUB TotalNo. Territory Individual Corporate Total Approved Rate Premiums1 1 417 34 451 10,358 4,671,4582 2 61 92 153 5,405 826,9653 3 51 0 51 5,958 303,8584 4 18 7 25 6,328 158,200

Line DSR Count of Taxis Registered to Individuals by TerritoryNo. DSR level Discount 1 2 3 4 Total1 15 33% 69 8 11 1 892 14 30% 10 0 1 0 113 13 29% 19 12 2 0 334 12 28% 17 2 2 3 245 11 27% 13 2 2 1 186 10 26% 22 0 2 4 287 9 25% 19 1 1 1 228 8 25% 24 4 0 0 289 7 25% 19 2 1 0 2210 6 20% 13 3 9 1 2611 5 15% 9 4 3 3 1912 4 15% 23 2 0 0 2513 3 10% 17 0 0 0 1714 2 10% 22 2 4 0 2815 1 5% 15 6 4 0 2516 <=0 0% 106 13 9 4 13217 Average Discount 17.46% 17.98% 18.59% 18.78% 17.67%



Figure 3: Impact of DSR Vehicle Premium Discounts for Taxis – 25% of ‘Corporate’

Changing to ‘Individual’

Figure 4: Impact of DSR Vehicle Premium Discounts for Taxis – 50% of ‘Corporate’

Changing to ‘Individual’

MPI believes it is unlikely that a significant number of existing corporate taxi

customers will change vehicle ownership from corporate entities to individuals to

qualify for DSR vehicle premium discounts as doing so would have other business

implications for these corporate entities.

As noted in Vehicles for Hire VFH.3.2, the availability of DSR vehicle premium

discounts for Taxicab Vehicle for Hire is expected to offset reduced loss exposure.

Further, “MPI is optimistic that using DSR will encourage safer driving and potentially

reduce loss exposure going forward.” MPI will adjust the rates for Taxicab Vehicle for

Hire accordingly to reflect actual loss experience as they occur.

Line Total Total

No. Territory Individual Corporate Individual Corporate Total Premiums Discount

1 1 417 34 17.46% 17.67% 16.48% 4,671,458 769,826

2 2 61 92 17.98% 17.67% 9.83% 826,965 81,258

3 3 51 0 18.59% 17.67% 18.59% 303,858 56,482

4 4 18 7 18.78% 17.67% 14.76% 158,200 23,345

5 Total 547 133 5,960,481 930,911

Number of Taxis Average Discount

Line Total Total

No. Territory Individual Corporate Individual Corporate Total Premiums Discount

1 1 417 34 17.46% 17.67% 16.81% 4,671,458 785,382

2 2 61 92 17.98% 17.67% 12.48% 826,965 103,224

3 3 51 0 18.59% 17.67% 18.59% 303,858 56,482

4 4 18 7 18.78% 17.67% 15.99% 158,200 25,302

5 Total 547 133 5,960,481 970,390

Number of Taxis Average Discount



PUB (MPI) 13

Volume and Chapter:

VFH.3.2 Page No.: 16, Figure 4

Topic: Ratemaking Assumptions

Sub Topic:

Issue: Taxicab VFH Base Rate Determination


Question:

a) Please explain why MPI used the four newest model years in its calculation of the

All-Purpose average Base Rate.

b) Please provide the supporting calculations behind the All-Purpose average base

rate.

c) Please indicate to what extent using the four newest model years is representative

of the type of vehicles used as taxicabs in Manitoba.

d) Please provide an alternative calculation based on the All-Purpose average base

rate for the newest four model years of Toyota Prius, which is predominantly used

for taxicabs in Winnipeg.


To provide additional context for the Taxicab base rate.

RESPONSE:

a) The most recent four model years was used to establish a conservative estimate in

the calculation of the blended rate.

b) Per the 2018 Rate Model, there are 53,951 All Purpose Passenger Vehicles in

territory 1 with model years 2014 to 2017. Using the 2018 approved rates, the



total undiscounted premiums for these group of vehicles is $101,533,657, resulting

in an average rate of $1,882.

c) The majority of vehicles registered in Manitoba with the insurance use of

taxi/livery are eight model years old (2010) or newer.

d) Per the 2018 Rate Model, there are 115 Toyota Prius insured as All Purpose

Passenger Vehicles in territory 1 with model years 2014 to 2017. Using the 2018

approved rates, the total undiscounted premiums for these group of vehicles is

$217,630, resulting in an average rate of $1,892. The average rate of $1,892 is

only marginally different from the average base rate of $1,882 presented in (b)

above. As a result, the selected percentage reduction by Vehicle for Hire (VFH)

level as presented in 2018 Interim Application VFH.3.2 Figure 5 is unchanged.



PUB (MPI) 14

Volume and Chapter:

VFH.4.2 Page No.: 25-26

Topic: Rating Model Enforceability

Sub Topic:

Issue: Claims Administration


The Corporation states: "The time band information will also be available to MPI's

claims administration staff for instances whereby a vehicle for hire automobile

experiences a claim. The vehicle insurance information as well as the time of day of

the incident, witness/passenger statements as well as data available via Manitoba

municipalities will be utilized by MPI claims administration staff in order to confirm

valid insurance coverage on the vehicle."

Question:

What "data available via Manitoba municipalities" will the Corporation expect to access

in order to confirm valid insurance coverage?


To better understand the expected claims handling process.

RESPONSE:

The Corporation intends to pursue formal information sharing agreements with

municipalities that will be participating in the vehicle for hire marketplace. As part of

those information sharing agreements, the Corporation will seek confirmation with the

respective municipality that the vehicle for hire driver was a valid employee associated

a Transportation Network Company (TNC) service provider at the time of an accident.



MPI anticipates doing so only if required in the event of a claims coverage

confirmation circumstance.

CAC (MPI)

January 4, 2018 2018 Vehicles for Hire Information Requests CAC (MPI) 1


CAC (MPI) 1

Volume and Chapter:

The Local Vehicles for Hire Act

Page No.: 1 and 2

Topic: By-laws regulating the vehicle for hire industry

Sub Topic: Clarifying consumer protection and safety matters

Issue: See Preamble


On November 10, 2017 The Local Vehicles for Hire Act (the VFH Act) received

Royal Assent. This Act may be referred to as chapter L195 of the Continuing

Consolidation of the Statutes of Manitoba.

Sub-section 3(2) extends by-law making authority to Municipalities. In 3(2) (c) it

states “establishing requirements for persons who carry on or are engaged in the

vehicle-for-hire business or any aspect of it, including the character and fitness of

an applicant or licence holder;”. In 3(2) (h) it states “specifying standards and

other requirements for the vehicle-for-hire industry or any aspect of it, which may

include standards and requirements for vehicles used as vehicles for hire and

equipment used in the vehicle-for-hire business;”. In 3(2) (i) it states “respecting

fees, rates, fares, tolls, tariffs or other charges that passengers may be charged,”.

In 3(2) (j) it states “respecting the type and amount of insurance that must be

obtained and held by an applicant or licence holder;”. In 3(2) (m) (iii) it states

“and making recommendations to the council about the matters relating to the

vehicle-for-hire industry, including matters about public safety, service quality and

consumer protection for passengers, and matters affecting those who work in the

industry;”.

Per Sub-section 7(2) MPI may require the registrar to collect information: “The

Manitoba Public Insurance Corporation may request the registrar to collect from a

municipality that has made a vehicle-for-hire by-law any information on its behalf

that the corporation considers reasonably necessary for the purpose of

administering and enforcing The Manitoba Public Insurance Corporation Act (the

MPIC Act). The registrar must comply with the corporation's request.”



Question:

a) Please file a copy of the City of Winnipeg by-law that regulates the vehicle for hire

industry in Winnipeg, if available. If it is not available please file a copy when it

becomes available

b) Has the Corporation made any requests to the Registrar that the Corporation

considered reasonably necessary for the purpose of administering and enforcing

the MPIC Act. If yes, please file a copy of the request.

c) Has the Corporation made any submissions to the City of Winnipeg “as input” to

the by-law regulating the vehicle for hire industry in Winnipeg in terms of public

safety, service quality and consumer protection (i.e. loss prevention). If yes,

please file a copy and if not please elaborate.


To better understand how the vehicles for hire industry will be regulated and how

these regulations feed into loss prevention, liability exposure (physical damage and

personal injury) and protect the public interest from an insurance rate setting

perspective.

RESPONSE:

a) Please see Attachment A. The City of Winnipeg Vehicle for Hire By-law was passed

by Council on December 13, 2017.

b) To date, MPI has not made any requests to the Registrar for information for the

purposes of administering or enforcing the MPIC Act, as provided for in subsection

7(2) of The Local Vehicles for Hire Act.

c) MPI did not make any submissions to the City of Winnipeg for the purposes of

drafting the City’s Vehicle for Hire by-law.

THE CITY OF WINNIPEG

BY-LAW NO. 129/2017, AS AMENDED

A By-law of THE CITY OF WINNIPEG to provide

for the regulation of vehicles for hire in the city of

Winnipeg.

WHEREAS Bill 30 of the 2nd Session of the 41st Legislature of the Province of Manitoba, The

Local Vehicles for Hire Act, C.C.S.M. c. L195, has been enacted and will come into force on

February 28, 2018;

AND WHEREAS The Local Vehicles for Hire Act dissolves the Taxicab Board and requires that

the City of Winnipeg must make by-laws for the purpose of regulating the vehicle for hire

industry, including vehicles for and vehicle for hire businesses;

AND WHEREAS The City of Winnipeg Charter grants the City authority to licence businesses

and the activities of businesses;

NOW THEREFORE THE CITY OF WINNIPEG, in Council assembled, enacts as follows:

PART 1

INTRODUCTORY PROVISIONS

1 Short title

1 This By-law may be cited as the “Vehicles for Hire By-law”.

2 Categories of regulated dispatchers, vehicles and drivers

2(1) This By-law regulates:

(a) dispatchers of vehicles for hire;

(b) vehicles for hire; and

(c) drivers of vehicles for hire.

2(2) Vehicles for hire are divided into the following categories:

(a) taxis, consisting of standard taxis and accessible taxis; and

(b) Personal Transportation Provider (PTP) vehicles, consisting of standard PTP

vehicles, accessible PTP vehicles, and limousines.

3 Definitions

3(1) In this By-law

“accessible” in respect of a vehicle, means a vehicle

January 4, 2018 2018 Vehicles for Hire Information Requests CAC (MPI) 1 Attachment A

Page 1

By-law No. 129/2017, as amended 2

(a) constructed and equipped to permit the loading, transportation and off-loading of

individuals who use a wheelchair, or similar device which can accommodate a

seated individual, and who cannot self-transfer; and

(b) driven by an individual who is physically capable of providing, and trained to

provide in compliance with the requirements of this By-law, transportation

services to individuals who use a wheelchair , or similar device which can

accommodate a seated individual, and who cannot self-transfer;

“accessible PTP vehicle” means a vehicle for hire that is accessible and that is

dispatched by a licenced PTP dispatcher;

“accessible taxi” means a vehicle for hire in respect of which an accessible taxi licence

has been issued under this By-law;

“accessible taxi driver’s licence” means licence issued under this By-law which

authorizes an individual to operate and to provide, or offer to provide, transportation

services by way of an accessible taxi;

“accessible taxi licence” means a licence issued in respect of an accessible taxi;

“charges” in relation to a relevant criminal offence or a major driving offence means the

initiation of law enforcement proceedings

(a) in the case of an enactment of the Parliament of Canada, by way of an

information laid by a peace officer before, and received by, a justice; or

(b) in the case of an offence under an enactment of Manitoba, a proceeding under

The Provincial Offences Act, C.C.S.M. c. P160 by information or ticket;

“Charter” means The City of Winnipeg Charter, S.M. 2002, c. 39;

"child abuse registry check" means a report about a person’s listing in the child abuse registry established and maintained under The Child and Family Services Act, C.C.S.M. c. C80; “City” means The City of Winnipeg continued under section 8 of the Charter;

“city” means the geographical area within the jurisdictional boundaries of the City of

Winnipeg;

“Council” means the council of the City;

“criminal record check” means a report about a person obtained from a law

enforcement agency stating whether or not the person has been convicted under an

enactment of the Parliament of Canada of an offence in respect of which a record of the


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person's fingerprints is maintained under the Identification of Criminals Act, R.S.C.,

1985, c. I-1, or has any outstanding charges for such offences awaiting court disposition,

and includes a Vulnerable Sector Search;

“designated employee” means the City employee whom the Chief Administrative

Officer has designated as responsible for exercising the authority given to the

designated employee by this By-law, and may be the Chief Administrative Officer;

“digital payment” means payment through a dispatcher’s digital platform;

“digital platform” includes an on-line enabled application and a website but does not

include communication by telephone, e-mail or SMS text messages;

“disabled person” means an individual with a physical, mental, intellectual or sensory

disability, or a combination of these;

“dispatch” means the act of receiving a request for a transportation service or sending

a vehicle for hire to a location for the purpose of providing or offering to provide a

transportation service to a passenger and includes:

(a) receiving requests for transportation services from passengers by any medium,

except street hails;

(b) directing a person driving a vehicle for hire to attend at the passenger’s location;

(c) operating any part of a platform that receives requests for transportation services

from passengers and connects such requests to a person driving a vehicle for

hire; and

(d) any other action that results in a vehicle for hire being sent to a passenger’s

location for the purpose of providing the passenger with transportation services,

regardless of whether transportation services are actually provided to the

passenger;

“dispatcher” means a person who dispatches one or more vehicles for hire and who

holds a dispatcher licence issued under this By-law;

“dispatcher licence” means a taxi dispatcher licence and a PTP dispatcher licence

issued under this By-law;

“enforcement officer” means

(a) The designated employee;

(b) every person designated under subsection 176(1) of the Charter as an

enforcement officer for the purposes of this By-law; and


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(c) every person appointed under subsection 176(2) of the Charter as a special

constable who, by the terms of the appointment, is authorized to enforce this By-

law;

“fare” means compensation for the provision of a transportation service;

“fare schedule” means a schedule of maximum fares that are permitted to be charged

to passengers of taxis which has been approved by Council or pursuant to a formula

established by Council;

“GPS” means any global positioning system;

“limousine” means a vehicle determined by the designated employee to qualify as a

luxury or specialized vehicle that provides transportation services;

“major driving offence” means an offence set out in subsection 125(6) of The Drivers

and Vehicles Act, C.C.S.M. c. D104;

“Manitoba Public Insurance” means the Manitoba Public Insurance Corporation

continued by The Manitoba Public Insurance Corporation Act, C.C.S.M. c. P215;

“non-digital platform” means a platform that is not a digital platform;

“owner”, in respect of a vehicle, means the person who is registered with Manitoba

Public Insurance as a registered owner of the vehicle and includes a lessee of a vehicle

who is so registered;

“PTP” means personal transportation provider;

“PTP dispatcher” means a person who dispatches a PTP vehicle;

“PTP driver” means an individual providing or offering to provide transportation services

in a PTP vehicle, and includes a standard PTP driver, an accessible PTP driver and a

limousine driver;

“PTP vehicle” means a vehicle for hire that is not a taxi, and includes a limousine;

“passenger” includes a prospective passenger;

“person” includes an individual, a partnership, and a corporation (including a

cooperative);

“personal information” has the same meaning as in The Freedom of Information and

Protection of Privacy Act, C.C.S.M. c. F175;


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“platform” means any means of communication by which transportation services are

offered to the public and includes an on-line enabled application, a website, e-mail, SMS

text message, telephone, or any other system or mode of communication offered, used

or operated that is used to pre-arrange a transportation service;

“pre-arranged” in respect of a transportation service, means a transportation service

that is arranged, booked, scheduled or requested by the passenger in advance of the

vehicle for hire arriving at the passenger’s location;

“Provincial driver’s licence” means a driver’s licence issued under The Drivers and

Vehicles Act, C.C.S.M. c. D104 that is applicable to the vehicle for hire being driven by

the individual;

“Provincial registration” means a vehicle registration under The Drivers and Vehicles

Act, C.C.S.M. c. D104;

“relevant criminal offence” means an offence under an enactment of the Parliament of

Canada involving

(a) an offence involving actual or threatened violence;

(b) an offence involving weapons, including the illegal possession of weapons;

(c) an offence involving sexual assault, sexual exploitation, sexual interference,

procuring, or invitation to sexual touching;

(d) an offence involving trafficking of controlled drugs or substances;

(e) an offence involving fraud, false pretences, bribery, extortion or theft over $5000;

or

(f) an offence related to the unlawful operation of a motor vehicle;

“standard taxi” means a taxi that is not an accessible taxi;

“street hail” means the offer of, solicitation of, or acceptance of an offer to provide, a

transportation service, or the provision of a transportation service, that is not pre-

arranged;

“taxi” means a vehicle for hire in respect of which a standard taxi licence or an

accessible taxi licence has been issued;

“taxi dispatcher” means a person who holds a taxi dispatcher licence;

“taxi dispatcher licence” means a taxi dispatcher licence issued under this By-law

which authorizes the licence holder to dispatch taxis;


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“taxi driver” means an individual to whom a taxi driver licence has been issued under

this By-law;

“taxi driver’s licence” means a standard taxi driver’s licence and an accessible taxi

driver’s licence issued under this By-law;

“transportation service” means the provision, or the offer to provide, transportation of

a passenger for compensation in which

(a) the passenger controls the route or the destination; and

(b) the vehicle is hired for a single uninterrupted engagement, which may include

multiple stops;

but does not include

(c) the transportation of a passenger in exchange for a receipted donation to a non-

share capital corporation so long as the transportation is provided whether or not

the donation is provided or offered;

(d) transportation of a passenger provided or offered as part of package of goods or

services for which there is a fee or charge so long as the transportation of a

passenger is shown by the owner or driver of the vehicle to be merely ancillary to

the provision of the goods or services;

(e) transportation in vehicles regulated by the Motor Transport Board;

(f) a shuttle service in which transportation is provided based on a pre-determined

schedule or route;

(g) transportation of students by vehicles owned or operated by or on behalf of a

school division established under The Public Schools Act, C.C.S.M. c. P250, or a

private school as defined in The Education Administration Act, C.C.S.M. c. E10;

(h) the provision of transportation by vehicles owned or operated by or on behalf of

the City to provide transportation to residents of the city, including Winnipeg

Transit vehicles; or

(i) the transportation of a patient by ambulance;

“valid” in the context of a licence issued under this By-law means a licence that has not

been revoked, cancelled or expired and is not suspended;


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“vehicle for hire” means any vehicle in which transportation services are provided and

includes, but is not limited to, the following:

(a) a taxi;

(b) an accessible taxi;

(c) a PTP vehicle;

(d) an accessible PTP vehicle; and

(e) a limousine;

“Vehicle for Hire Appeal Board” means the Vehicle for Hire Appeal Board created by

this By-law.

4 General prohibitions

4(1) A person must not provide, or offer to provide, transportation services except in

compliance with this By-law.

4(2) The owner of a vehicle must not allow it to be used, or to be offered to be used, to

provide transportation services except in compliance with this by-law.

4(3) A person must not dispatch a vehicle except in compliance with this By-law.

5 Failing to pay fare prohibited

5 A person who fails to pay a fare validly charged under this By-law commits an offence.

PART 2

DISPATCHERS

DIVISION 1 - ALL DISPATCHERS

6 Dispatching without licence prohibited

6 A person who is not a licenced dispatcher under this By-law must not dispatch, or offer

to dispatch, a vehicle for hire.

7 Dispatching unregistered or unlicenced drivers or vehicles prohibited

7 A person must not dispatch a vehicle for hire unless both the vehicle being dispatched

and the driver of the vehicle are

(a) in compliance with the requirements set out in this By-law,

(b) registered with the dispatcher; and


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(c) in the case of a taxi being dispatched, licenced under this By-law.

8 Qualifications for dispatch licence

8(1) In order to be issued a dispatcher licence, an applicant must

(a) pay the applicable application fee or licence fee to the City;

(b) provide evidence satisfactory to the designated employee that the applicant

holds policies of insurance consistent with the requirements set out in this By-

law;

(c) demonstrate to the satisfaction of the designated employee that the applicant has

data security measures and policies in place to protect the personal information

collected by the dispatcher related to drivers and passengers;

(d) demonstrate to the satisfaction of the designated employee that the dispatcher

has in place a process by which it will accept, record, review and respond to

complaints concerning drivers and vehicles registered with the dispatcher;

(e) demonstrate to the satisfaction of the designated employee that the dispatcher

has in place a process by which it will facilitate the retrieval by passengers of

their property left in vehicles for hire registered with the dispatcher;

(f) provide to the designated employee the number of vehicles for hire registered

with the dispatcher in each of the following categories:

(i) taxis;

(ii) accessible taxis;

(iii) PTP vehicles;

(iv) accessible PTP vehicles; and

(v) limousines; and

(g) provide other information or documentation reasonably required by the

designated employee.

8(2) In addition to the requirements in subsection (1), an applicant that is a corporation must

provide to the designated employee the following:

(a) a copy of its incorporating documents;

(b) a Certificate of Status issued by the Companies Office;


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(c) a list of the members of its board of directors;

(d) an address for service in the Province of Manitoba for service of all documents

and notices related to this By-law; and

(e) other documents reasonably required by the designated employee.

8(3) In addition to the requirements in subsection (1), an applicant that is a partnership must

provide to the designated employee

(a) the names and addresses of each member of the partnership;

(b) the business name under which it operates and proof of the registration of its

business name;

(c) an address for service in the Province of Manitoba for service of all documents

and notices related to this By-law; and

(d) other documents reasonably required by the designated employee.

9 Renewal of dispatcher licence

9 In order to be issued a renewal of a dispatcher licence, the licence holder

(a) must pay the applicable renewal fee;

(b) must provide information concerning any factual changes to information provided

at the time of its application or most recent renewal and, where required by the

designated employee, evidence that changes have not taken place; and

(c) must not owe any outstanding fines or fees with respect to this By-law (including

per-trip fees) or any City parking by-law.

10 Data security measures and policies

10(1) A licenced dispatcher must comply with data security measures and policies for personal

information about passengers and drivers proposed by the licenced dispatcher and approved as

satisfactory by the designated employee.

10(2) A licenced dispatcher may propose changes to its data security measures and policies

at any time but these changes do not apply until and unless they are approved by the

designated employee.

10(3) The designated employee may order that a licenced dispatcher make changes to its

data security measures and policies and, when doing so, must provide a reasonable time for

compliance with the order. The licenced dispatcher must comply with such an order.


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10(4) This section does not apply to a dispatcher who is operating under a provisional licence

issued under clause 73(2)(g) (Powers of designated employee).

11 Passenger property retrieval policy

11(1) A licenced dispatcher must comply with a process proposed by the dispatcher and

approved as satisfactory by the designated employee by which passengers can retrieve their

property left in vehicles for hire registered with the dispatcher.

11(2) A licenced dispatcher may propose changes to its passenger property retrieval policy at

any time but these changes do not apply until and unless they are approved by the designated

employee.


passenger property retrieval policy and, when doing so, must provide a reasonable time for

compliance with the order. The licenced dispatcher must comply with such an order.

12 Complaints Process

12(1) A dispatcher must comply with a process proposed by the dispatcher and approved as

satisfactory by the designated employee for accepting, recording, reviewing and responding to

complaints.

12(2) As part of its complaints process, a dispatcher must maintain records required by the

designated employee concerning

(a) every complaint received;

(b) evidence provided in respect of or in response to a complaint; and

(c) the response of the dispatcher to the complaint;

and must make these records available to the designated employee within 48 hours upon

request.

12(3) A licenced dispatcher may propose changes to its complaints process at any time but

these changes do not apply until and unless they are approved by the designated employee.


complaints process and, when doing so, must provide a reasonable time for compliance with the

order. The licenced dispatcher must comply with such an order.

12(5) This section does not apply to a dispatcher who is operating under a provisional licence

issued under clause 73(2)(g).

13 Dispatcher insurance mandatory

13(1) It is a condition of being issued and maintaining a licence that a dispatcher must obtain

and maintain policies of commercial general liability insurance and non-owned automobile


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insurance in an amount and with provisions determined by the designated employee to be

sufficient to adequately protect the City, drivers, vehicle for hire owners, and the general public.

13(2) The insurance required by subsection (1) must contain an endorsement to provide the

City no less than 30 days’ prior written notice from the insurer of any cancellation.

13(3) Failure to comply with this section invalidates the dispatcher’s licence without the need

for any action on the part of the designated employee. Once the dispatcher’s licence has been

invalidated, the dispatcher must not engage in dispatching until the dispatcher has applied for

and been issued a new licence.

13(4) A dispatcher must provide proof of compliance with this section to the designated

employee within two business days after being given a written order to do so.

14 Dispatcher records

14(1) Dispatchers must create and maintain records of the following information, separated by

taxis and PTP vehicles, by taxi drivers and PTP drivers, and, in the case of taxis and

limousines, separated by whether they have been dispatched or street hailed, in a format

required by the designated employee:

(a) the total number of transportation services provided by the dispatcher on a

monthly basis;

(b) the total number of transportation services provided by accessible vehicles for

hire on a monthly basis;

(c) the total number of vehicles for hire providing a transportation service through the

dispatcher over the course of a month;

(d) the total number of accessible vehicles for hire providing a transportation service

through the dispatcher over the course of a month;

(e) the driver and vehicle involved in providing each transportation service, including:

(i) the type of vehicle by by-law category;

(ii) the name of the driver;

(iii) the Provincial licence plate number of the vehicle;

(iv) the date, time and duration of the transportation service;

(v) the pick-up and drop off locations;


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(vi) the elapsed time between a request for an transportation service (other

than a transportation service scheduled in advance) and the initiation of

the transportation service;

(f) a daily list of registered vehicles and registered drivers containing information

reasonably required by the designated employee; and

(g) other information and records reasonably required by the designated employee.

14(2) The information required by subsection (1) and all records related to registered drivers

and registered vehicles must be kept by the dispatcher for at least three years after the date

they were created.

14(3) The dispatcher must provide the information required by this section to the designated

employee within two business days after a written request by the designated employee.

14(4) If a dispatcher’s licence is suspended, invalidated or cancelled, the information required

by this section must be provided to the designated employee immediately.

14(5) The dispatcher must make the information required by this section available for

inspection by the designated employee or an enforcement officer upon demand.

14(6) This section does not apply to a dispatcher while operating under a provisional licence

issued under clause 73(2)(g).

15 Obligation to report to designated employee

15 A dispatcher must report the following information to the designated employee within 24

hours:

(a) the fact that a driver has been registered or ceases to be registered with the

dispatcher;

(b) information concerning convictions and charges reported to the dispatcher by the

driver under subsection 46(2) (Rules for all vehicle for hire drivers) of this By-law.

16 Public information

16 A dispatcher who uses a digital platform to dispatch must make available the following

information to the public through the digital platform:

(a) the insurance coverage maintained by the dispatcher and its drivers;

(b) the transportation services offered by the dispatcher and its drivers;

(c) the screening process for its drivers and its vehicles;


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(d) the process by which it will accept, review and respond to complaints concerning

drivers and vehicles registered with the dispatcher; and

(e) the process by which passengers can retrieve their property left in vehicles for

hire registered with the dispatcher.

17 Notification of estimated time of arrival

17 At the time a request for a transportation service is made, a dispatcher must provide an

estimated time of arrival of the vehicle for hire that is being or will be dispatched in response to

the request.

18 Obligation to dispatch in order of request

18 A dispatcher must dispatch taxis in the order in which a request for transportation

service is made.

19 Dispatching accessible vehicles for hire

19(1) Despite section 18 (Obligation to dispatch in order of request), if a dispatcher has one or

more registered accessible vehicles for hire available for dispatch that are not actively engaged

in providing transportation services to passengers, the dispatcher must immediately dispatch an

accessible vehicle for hire to respond to a request for service from a passenger identifying as

requiring an accessible vehicle for hire.

19(2) For greater clarity, a dispatcher must not dispatch an accessible vehicle for hire to any

other request for service so long as a request from a passenger identifying as requiring an

accessible vehicle for hire is outstanding.

19(3) A dispatcher must not hold out that it has available an accessible vehicle for hire unless

the vehicle for hire meets the definition of an accessible vehicle for hire set out in this By-law.

20 Dispatchers may enter into contracts to provide transportation services

20(1) The following provisions of this By-law do not apply to the dispatchers, vehicles and

drivers if they can show that they are engaged in providing transportation services pursuant to a

contract which the dispatcher has entered into with an employer, restaurant, bar, entertainment

venue, service provider, government or any other person to provide transportation services for

multiple individuals:

(a) section 18 (Obligation to dispatch in order of request);

(b) section 19 (Dispatching accessible vehicles for hire);

(c) section 22 (Only taxi dispatchers may dispatch by non-digital platform;

(d) if the contract involves provision of PTP vehicles, section 25 (Information to be

provided to passengers);


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(e) if the contract involves payment to the dispatcher rather than the vehicle for hire

driver, section 57 (Negotiated taxi fares).

20(2) In order for subsection (1) to apply, the dispatcher must make the contract available to

the designated employee within 24 hours upon request.

DIVISION 2 – TAXI DISPATCHERS

21 Only taxi dispatchers may dispatch taxis

21 A person who is not a taxi dispatcher must not dispatch a taxi.

22 Only taxi dispatchers may dispatch by non-digital platform

22 Subject to section 30 (PTP dispatchers may use non-digital platform to dispatch

limousines),

(a) a person who is not a taxi dispatcher must not dispatch or offer to dispatch a

vehicle for hire by a non-digital platform; and

(b) a dispatcher must not dispatch by non-digital platform except to a taxi driver

driving a taxi, both of which are registered with the dispatcher.

23 Camera records in taxis

23 A taxi dispatcher is responsible for ensuring that any and all recordings made by the in-

vehicle camera required by subclause 38(1)(g)(ii) (Qualifications for taxi licence) are preserved

for a period of time determined by the designated employee after the date of recording, and are

turned over to an enforcement officer or a police officer immediately upon request.

24 24/7 service

24 A taxi dispatcher who has registered more than 50 taxis must ensure that at least one

taxi is available for dispatch on a 24 hour basis, seven days a week, 365 days a year.

25 Information to be provided to passengers

25 A taxi dispatcher must ensure that the following information is provided to passengers by

having it prominently displayed in every taxi registered to the dispatcher in a way that is visible

to all passengers:

(a) the dispatcher’s name and contact information;

(b) the taxi driver’s licence of the driver of the taxi, which must include a photograph

of the driver;

(c) a current fare schedule;

(d) the process by which a complaint can be made;

(e) the process by which property left behind by a passenger can be retrieved;


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(f) information required by the designated employee concerning the operation of the

camera located in the taxi.

26 Refusal of service or not dropping passenger at preferred destination to be reported

26 Within 24 hours of receiving a report from a taxi driver registered with the dispatcher that

he or she has refused to accept a request for service or has refused to drop off a passenger at

his or her preferred destination under section 58 (Obligation to accept passengers and drop off

at preferred destination), a taxi dispatcher must notify the designated employee in writing,

providing the following information:

(a) the date, time and location of the refusal;

(b) the taxi driver’s licence number;

(c) the taxi’s licence number;

(d) a complete description of the circumstances and the reasons for refusing the

request for service;

(e) any other information reasonably requested by the designated employee.

27 Driver disqualification to be reported

27 A taxi dispatcher who becomes aware of facts that would make a driver registered with

that dispatcher ineligible to be licenced under this By-law or which would result in the driver’s

licence being cancelled must immediately report those facts to the designated employee.

DIVISION 3 - PTP DISPATCHERS

28 Only PTP dispatchers may dispatch PTPs

28 A person who is not a licenced PTP dispatcher must not dispatch a PTP vehicle.

29 PTP dispatcher may only dispatch insured vehicles

29 A PTP dispatcher must not dispatch a PTP vehicle on days or at times when it is not

insured to operate as a vehicle for hire.

30 PTP dispatchers may use non-digital platform to dispatch limousines

30 Despite section 22 (Only taxi dispatchers may dispatch by non-digital platform), a PTP

dispatcher may use a non-digital platform to dispatch a limousine.

31 PTP dispatcher must provide ID cards to drivers

31 A PTP dispatcher must issue to every driver registered with the dispatcher an

identification card in written or electronic form providing the following information:

(a) the first name of the driver and a recent photograph of the driver;

(b) the driver’s identifying number maintained by the dispatcher;


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(c) the name and contact information of the dispatcher.

32 Information to be provided to passengers

32(1) A PTP dispatcher must provide the following information to a prospective passenger at

the time the request for service is made:

(a) the dispatcher’s name;

(b) the type of vehicle that will be dispatched in response to the request for service;

(c) an estimate of the total cost of the transportation service.

32(2) When a PTP vehicle other than a limousine is dispatched, a PTP dispatcher must

provide the following information through the digital platform used to dispatch the vehicle to the

person requesting the service:

(a) the first name and photograph of the driver that will provide the transportation

service;

(b) a description of the make, model, and estimated time of arrival of the vehicle that

will provide the transportation service.

32(3) A PTP dispatcher must provide the following through the platform used to dispatch its

registered PTP vehicles:

(a) information that its drivers can only provide transportation services through the

dispatcher’s digital platform and cannot accept street hails;

(b) information that its drivers cannot accept payment for transportation services and

that payment may only be made through the dispatcher’s digital platform;

(c) information concerning the process of filing a complaint concerning the driver, the

vehicle or the dispatcher;

(d) a process allowing the passenger to accept or refuse the transportation service

prior to it being initiated;

(e) a secure payment mechanism through an digital platform;

(f) a printed or electronic receipt to the passenger after providing the transportation

service that includes information confirming

(i) the total amount paid;

(ii) the date and time the passenger was picked up; and


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(iii) the first name of the driver.

33 Criteria for driver registration with PTP dispatcher

33(1) A PTP dispatcher must not register an individual as a driver unless the individual

provides the following:

(a) a birth certificate or other documentation proving that he or she is at least 18

years of age;

(b) evidence that he or she holds a valid Provincial driver’s licence applicable to the

use of the vehicle being driven;

(c) a criminal record check issued no more than 90 days before the application for

registration was made;

(d) the applicant’s driver’s abstract issued by Manitoba Public Insurance.

33(2) A dispatcher must not register an individual as a PTP driver if he or she has been

convicted within the past 10 years of a relevant criminal offence unless a record suspension

(pardon) has been issued in respect of that offence.

33(3) A PTP dispatcher must not register an individual as a PTP driver if he or she is listed on

the child abuse registry.

33(4) A PTP dispatcher must not register an individual as a PTP driver if he or she has been

convicted of a major driving offence within the past 10 years.

33(5) If an individual who applies to be registered as a PTP driver has been charged with a

relevant criminal offence or a major driving offence but not yet acquitted or convicted, the PTP

dispatcher must notify the designated employee and must not register the individual until and

unless the designated employee approves the registration.

33(6) After being notified of an applicant for registration with a PTP dispatcher who has been

charged with a relevant criminal offence or a major driving offence but not yet acquitted or

convicted, the designated employee must not approve the registration if he or she determines

that the nature of the charges are such that approving the registration would result in a

significant risk of harm to the public.

33(7) A PTP dispatcher must not register an individual as a PTP driver unless the individual

provides a document satisfactory to the designated employee indicating that the individual has

provided consent

(a) for his or her personal information to be submitted to the designated employee;

and


Page 17


(b) for the designated employee to have access to his or her personal information

maintained by Manitoba Public Insurance, the Winnipeg Police Service and the

body responsible for maintaining the Child Abuse Registry;

for the purposes of administering and enforcing this By-law.

33(8) If the designated employee requires that PTP drivers must undergo training before being

dispatched, a PTP dispatcher must not register an individual as a PTP driver unless he or she

has undergone the required training.

34 Termination of PTP drivers’ registration

34(1) A PTP dispatcher must terminate a PTP driver’s registration if

(a) within 90 days after the driver’s registration, the driver has failed to provide a

child abuse registry check to the PTP dispatcher unless the driver has initiated

the application but not received a response; or

(b) the child abuse registry check shows that the driver is registered on the child

abuse registry.

34(2) At the conclusion of each 12 month period after an individual has been registered as a

PTP driver, a PTP dispatcher must require that a registered driver provide a criminal record

check, child abuse registry check and a driver’s abstract from MPI which have been issued no

more than 90 days prior to the end of the 12 month period. If the driver fails to do so, the

dispatcher must terminate that driver’s registration.

34(3) A PTP dispatcher must terminate a PTP driver’s registration if, after being registered, the

driver fails to meet the requirements for registration set out in section 33 (Criteria for driver

registration with PTP dispatcher) or fails to hold a valid Provincial licence applicable to use of

the vehicle being driven.

34(4) A PTP dispatcher must terminate or suspend a PTP driver’s registration if required to do

so by the designated employee.

35 Accessible PTP driver training

35(1) A PTP dispatcher must not register an individual as an accessible PTP driver unless the

individual provides proof that he or she has completed any training program required by the

designated employee for accessible PTP drivers.

35(2) A PTP dispatcher must terminate the registration of an individual as an accessible PTP

driver if the person fails to complete training programs required by the designated employee

within time periods or prior to deadlines established by the designated employee.


Page 18


36 Criteria for vehicle registration with PTP dispatcher

36(1) A dispatcher must not register a PTP vehicle unless

(a) the owner of the vehicle provides evidence that the vehicle is insured with

Manitoba Public Insurance as a PTP for the period or periods of time during

which it will operate as a PTP and in an amount per occurrence which is

determined by the designated employee to be sufficient to adequately protect the

City, its drivers, its owners and members of the public; and

(b) has been inspected and has been issued inspection certificates applicable to that

vehicle under The Drivers and Vehicles Act, C.C.S.M. c. D104, within 30 days

prior to the application for registration.

36(2) A dispatcher must terminate a PTP’s registration if the owner of the vehicle fails to

provide on an annual basis

(a) evidence that it meets the insurance requirements set out in subsection (1); and

(b) evidence that it has been inspected has been issued inspection certificates

applicable to that vehicle under The Drivers and Vehicles Act, C.C.S.M. c. D104.

36(3) A dispatcher must terminate or suspend a vehicle’s registration if required to do so by

the designated employee.

PART 3

TAXI LICENCES

37 Services exclusive to taxis

37 The owner of a vehicle for hire must not permit the driver of the vehicle to offer or

provide transportation services

(a) by means of a street hail;

(a) by means of dispatch through a non-digital platform; or

(b) in exchange for compensation provided by any method other than digital

payment;

unless the vehicle is a licenced taxi driven by a licenced taxi driver and both are registered with

a licenced taxi dispatcher.

38 Qualifications for taxi licence

38(1) In order to qualify for a taxi licence, a vehicle must


Page 19


(a) have been issued a valid Provincial registration;

(b) be insured with Manitoba Public Insurance as a vehicle for hire in an amount per

occurrence which is determined by the designated employee to be sufficient to

adequately protect the City, its drivers, its owners and members of the public;

(c) have been inspected and been issued inspection certificates applicable to that

vehicle under The Drivers and Vehicles Act, C.C.S.M. c. D104, within 30 days

prior to the application for registration;

(d) be in good working order, meeting all road safety requirements;

(e) allow for access and exits by passengers that are controlled by the passenger;

(f) be registered with a licenced dispatcher; and

(g) be equipped with the following equipment approved by the designated employee:

(i) a driver safety shield;

(ii) an operating in-vehicle camera;

(iii) a global positioning system;

(iv) a strobe light affixed to the roof of the vehicle that can provide warning of

an emergency situation;

(v) a certified meter which measures time, distance or both;

(vi) a light on the exterior of the vehicle that turns off when the meter is

operating.

38(2) In order for an accessible taxi licence to be issued in respect of it, a vehicle need not

meet the requirements set out in subclauses (g)(i) and (iv). However, it must meet the other

requirements of subsection (1) and, in addition, must to the satisfaction of the designated

employee be constructed and equipped to permit the loading, transportation and off-loading

of individuals who use a wheelchair , or similar device which can accommodate a seated

individual, and who cannot self-transfer.

38(3) The designated employee may require that a vehicle and any required equipment be

examined and certified as operating appropriately before a licence is issued in respect of the

vehicle.

38(4) In order for a taxi licence to be issued in respect of a vehicle, the owner of the vehicle

must complete forms and provide information reasonably required by the designated employee.


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39 Ownership of licence

39(1) The designated employee may only issue a taxi licence in the name of the person who is

registered with Manitoba Public Insurance as the owner of the vehicle in respect of which the

taxi licence is being issued.

39(2) Before the designated employee may issue or renew a taxi licence, the owner of the

vehicle must

(a) pay the applicable fee;

(b) Provide documentation and information reasonably required by the designated

employee to determine whether the vehicle’s meets the vehicle requirements of a

taxi set out in this By-law;

(c) If required by the designated employee, submit the vehicle to an inspection; and

(d) Provide an address for service in the Province of Manitoba for service of all

documents and notices related to this By-law.

39(3) If the owner of the taxi is a corporation, a licence must not be issued or renewed in its

name if it is not active as determined by the Companies Office.

40 Transitional - current taxicab business licences valid as taxi licences

40(1) Notwithstanding section 38 (Qualifications for taxi licence), upon payment of the

applicable fee, the designated employee must issue a taxi licence under this By-law to the

holder of a standard taxicab licence, except a seasonal licence, that was issued under The

Taxicab Act, RSM 1987, c. T10, and that was valid immediately prior to the date that Act was

repealed. The licence must be issued in respect of the vehicle identified by the Taxicab Board

as associated with that business licence.

40(2) Notwithstanding section 38 (Qualifications for taxi licence), upon payment of the

applicable fee, the designated employee must issue an accessible taxi licence under this By-law

effective March 1, 2018 to each of the following:

(a) A person who holds an accessible taxicab licence, except a seasonal licence,

that was issued under The Taxicab Act, RSM 1987, c. T10, and that was valid

immediately prior to the date that Act was repealed;

(b) A person who holds a handicab van licence that was issued under The Taxicab

Act, RSM 1987, c. T10, and that was valid immediately prior to the date that Act

was repealed, so long as the handicab van in respect of which the licence was

issued has a meter installed prior to the licence under this By-law being issued.


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The licence must be issued in respect of the vehicle identified by the Taxicab Board as

associated with that business licence.

40(3) If a licence issued by the Taxicab Board under The Taxicab Act RSM 1987, c. T10, is

not eligible for renewal under this section because the licence is suspended on February 28,

2018, the designated employee must hold a hearing by March 31, 2018 and, using the criteria

set out in that Act and The Taxicab Regulation MR 209/91, determine whether the licence

should continue to be suspended or should be cancelled. Subsections 74(2) to (6) (Licence

suspensions and cancellations) apply to the hearing.

40(4) Once a taxi licence has been issued under this By-law pursuant to subsection (1), that

vehicle and licence holder are fully subject to the provisions of this By-law.

40(5) If the holder of a business licence that was issued under The Taxicab Act, RSM 1987,

c. T10, is not eligible to have a licence issued under this section, that business licence is hereby

cancelled.

41 Renewal

41 In order to be issued a renewal of a taxi licence, the licence holder

(a) Must meet the requirements for an applicant for an initial licence set out in

section 38 (Qualifications for taxi licence);

(b) must provide information concerning any factual changes to information provided

at the time of its application or most recent renewal; and

(c) Must not owe any outstanding fines or fees with respect to this By-law or any City

parking by-law.

42 Taxi licences limited in number

42(1) The designated employee must ensure that the total number of valid taxi licences at any

point in time is no more than the maximum number established by Council or determined

according to a formula established by Council.

42(2) When the number of taxi licences determined in accordance with subsection (1)

increases or a licence is cancelled, the designated employee shall issue licences to new eligible

applicants from a priority list as determined by lottery from a list of eligible applicants maintained

by the designated employee.

42(3) If the number of taxi licences determined in accordance with subsection (1) decreases,

the designated employee need not cancel existing licences in order to meet the new total but

must not issue new licences until the total falls to the level determined in accordance with

subsection (1).


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43 Existing transferable taxicab licences transferable

43(1) If the holder of a

(a) standard taxicab licence,

(b) accessible taxicab licence; or

(c) handicab van licence;

that was permitted to be transferred under The Taxicab Act, RSM 1987, c. T10, from one

vehicle owner to another has been issued a licence under this By-law pursuant to section 40

(Transitional), the licences issued under this By-law may continue to be transferred, on

condition that the person to whom the licence is being transferred is registered with Manitoba

Public Insurance as the owner of the vehicle in respect of which the licence is being transferred

and the vehicle and owner are otherwise eligible to be issued a taxi licence.

43(2) Subject to subsection (1), if the holder of a taxi licence that is permitted to be transferred

under subsection (1) is an individual and the owner dies, the taxi licence for that vehicle may be

transferred by the executor or administrator of the owner’s estate within one year of the owner’s

death. If it is not transferred within that time, the licence is cancelled.

43(3) Taxi licences may be transferred from one vehicle to another vehicle on condition that

the vehicle to which the licence is transferred is eligible for a taxi licence.

43(4) A transfer of a taxi licence is not effective until it has been approved by the designated

employee and any applicable fees have been paid.

44 Convertibility of licences

44(1) The owner of a standard taxi licence may convert the licence to an accessible taxi

licence so long as the vehicle in respect of which the accessible taxi licence is sought meets the

requirements for an accessible taxi licence.

44(2) The owner of an accessible taxi licence may not convert the licence to a standard taxi

licence.

45 Operating requirements and inspections of taxis

45(1) The owner of a taxi must ensure that it meets all applicable requirements set out in

subsection 38(1) (Qualifications for taxi licence) at all times while it is offering or providing

transportation services.

45(2) The owner of a taxi must ensure that notices of a size and containing language

approved by the designated employee are prominently displayed on or within the taxi in a way

that is visible to all passengers concerning the operation of a camera in the taxi.

45(3) The owner of a taxi must ensure that it complies with all signage and markings

requirements required by the designated employee.


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45(4) The owner of a taxi must ensure that it undergoes annual inspections and occasional

inspections ordered by an enforcement officer in order to determine compliance with subsection

(1).

PART 4

DRIVERS

DIVISION 1 - ALL DRIVERS

46 Rules for all vehicle for hire drivers

46(1) Subject to section 51 (Transition), an individual must not operate a vehicle for hire

unless he or she

(a) Is registered with a licenced dispatcher;

(b) Maintains a valid Provincial driver’s licence applicable to the use of the vehicle

being driven;

(c) Has not been convicted within the previous 10 years of a relevant criminal

offence unless a record suspension (pardon) has been issued in respect of that

offence;

(d) Has not been convicted within the previous 10 years of a major driving offence;

and

(e) Is not registered on the child abuse registry.

46(2) The driver of a vehicle for hire must immediately report to the dispatcher with which he

or she is registered any of the following:

(a) His or her conviction for any relevant criminal offence or a major driving offence;

(b) Charges laid against him or her of any relevant criminal offence or for a major

driving offence;

(c) His or her registration on the child abuse registry;

(d) The suspension of his or her Provincial driver’s licence.


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DIVISION 2 - TAXI DRIVERS

47 Prohibition on unlicenced taxi drivers

47 An individual must not drive a taxi unless he or she holds a valid taxi driver’s licence

under this By-law.

48 Services exclusive to taxi drivers and taxi vehicles

48 Subject to section 65 (Rules for limousine drivers), unless an individual is a licenced taxi

driver registered with a licenced taxi dispatcher and is driving a licenced taxi registered with that

dispatcher, he or she must not provide or offer to provide transportation services

(a) through a street hail;

(b) through a dispatch by a non-digital platform; or

(c) in exchange for payment by any method other than digital payment.

49 Requirements for obtaining taxi driver’s licence

49(1) In order to be eligible to be issued a taxi driver’s licence, an individual must

(a) pay the applicable licence and application fee or fees;

(b) be at least 18 years of age;

(c) meet the requirements set out in section 46 (Rules for all vehicle for hire drivers);

(d) not be charged with a relevant criminal offence or a major driving offence if the

designated employee determines that the nature of the charges are such that

issuing a taxi driver’s licence would result in a significant risk of harm to the

public;

(e) demonstrate a level of verbal English language proficiency determined by the

designated employee to be adequate for the purposes of providing transportation

services in a taxi;

(f) provide a document satisfactory to the designated employee indicating that the

individual has provided consent

(i) for his or her personal information being submitted to the designated

employee; and

(ii) for the designated employee to have access to his or her personal

information maintained by Manitoba Public Insurance, the Winnipeg Police

Service and the body responsible for maintaining the Child Abuse Registry for

the purposes of administering and enforcing this By-law;


Page 25


(g) complete training required by the designated employee;

(h) demonstrate to a level required by the designated employee the skills and

knowledge reasonably considered by the designated employee to be necessary

in order to provide the services exclusive to taxi drivers; and

(i) provide all documentation reasonably required by the designated employee to

determine the individual’s eligibility for a taxi driver’s licence.

49(2) In order to be eligible to be issued an accessible taxi driver’s licence, an individual must

meet the requirements set out in subsection (1) and must, in addition, as determined by the

designated employee either

(a) complete within a period of time prior to the application, as determined by the

designated employee, any training required by the designated employee with

respect to transportation service for individuals who use a wheelchair , or similar

device which can accommodate a seated individual, and who cannot self-

transfer; or

(b) demonstrate to a level required by the designated employee the skills and

knowledge reasonably considered by the designated employee to be necessary

in order to provide transportation services to individuals who use a wheelchair ,

or similar device which can accommodate a seated individual, and who cannot

self-transfer.

50 Requirements for renewing taxi driver’s licence

50 In order to be eligible to have his or her licence renewed, a taxi driver

(a) must meet the requirements for an applicant for a taxi driver’s licence set out in

section 49 (Requirements for obtaining taxi driver’s licence);

(b) must provide information to the designated employee concerning any factual

changes to information provided at the time of its application or most recent

renewal;

(c) must provide to the designated employee a criminal record check and a child

abuse registry check issued no more than 90 days before the application for

registration was made; and

(d) must not owe any outstanding fines or fees with respect to this By-law or any City

parking by-law.

Transition - current taxi driver’s licences

50(1) Subject to subsection (3) and suspensions or cancellations of a driver’s licence under

section 74 (Enforcement authority), all standard taxicab driver’s licences issued by the Taxicab


Page 26


Board under The Taxicab Act, RSM 1987, c. T10, which were valid on February 28, 2018 are

valid until the date of their expiry and are then eligible for renewal as a standard taxi driver’s

licence under section 50.

50(2) Subject to subsection (3) and suspensions or cancellations of a driver’s licence under

section 74 (Enforcement authority), all valid accessible taxicab driver’s licences issued by the

Taxicab Board under The Taxicab Act, RSM 1987, c. T10, which were valid on February 28,

2018 are valid until the date of their expiry and are then eligible for renewal as accessible taxi

driver’s licences under section 50 (Requirements for renewing taxi driver’s licence).

50(3) For purposes of clarification, it is not necessary for a taxi driver or accessible taxi driver

who had a valid licence on February 28, 2018 to provide a criminal record check or child abuse

registry check until he or she applies for the renewal of the licence under section 50

(Requirements for renewing taxi driver’s licence).

50(4) Subsection (1) and (2) do not apply if taxi driver

(a) has been convicted within the previous 10 years of a relevant criminal offence

and a record suspension (pardon) has not been issued in respect of that offence;

(b) has been convicted within the previous 10 years of a major driving offence; or

(c) is registered on the child abuse registry.

In this situation, subject to an appeal under this By-law, the taxi driver’s licence is immediately

cancelled.

50(5) Subject to subsection (3), if a taxicab driver’s licence issued by the Taxicab Board under

The Taxicab Act RSM 1987, c. T10, is not eligible for renewal under this section because the

licence is suspended on February 28, 2018, the designated employee must hold a hearing by

March 31, 2018 and, using the criteria established by The Taxicab Regulation MR 209/91,

determine whether the licence should continue to be suspended or should be cancelled.

Subsections 74(2) to (6) (Licence suspensions and cancellations) apply to the hearing.

51 Driver’s licence must be visible

51 At all times while providing transportation services, a taxi driver must ensure that a valid

licence card or other object that has been issued by the designated employee as proof that he

or she is a taxi driver is prominently displayed and clearly visible to passengers within the taxi.

52 Reporting requirements for taxi drivers

52 A taxi driver must immediately report to the designated employee

(a) his or her conviction of a relevant criminal offence or a major driving offence;

(a) charges laid against him or her of a relevant criminal offence or a major driving

offence;


Page 27


(b) his or her registration on the child abuse registry;

(c) the suspension of his or her Provincial driver’s licence; and

(d) any change in his or her medical condition that could affect his or her ability to

drive and to maintain a Provincial driver’s licence.

53 Taxi may accommodate street hails

53(1) A taxi driver may accept a request for service by any means, including a street hail, or

through a non-digital platform.

53(2) If a taxi driver accepts a street hail, the driver must immediately record the transportation

service and, within 24 hours, inform the licenced dispatcher with whom he or she is registered of

(a) the street hail;

(b) the times and locations of the pick-up and drop off.

54 Taxi may accept any mode of payment

54 A taxi driver may accept compensation for providing a transportation service in any form,

including through non-digital payment.

55 Passenger service rules for taxi drivers

55 Taxi drivers must

(a) take the most economical route to the passenger’s destination unless otherwise

directed by the passenger; and

(b) provide reasonable assistance to any passenger as requested or required in the

circumstances.

56 Negotiated taxi fares

56(1) Subject to section 20 (Dispatchers may enter into contracts to provide transportation

services) and this section, a taxi driver must not charge fares other than in accordance with the

fare schedule.

56(2) A taxi driver may, before the transportation service is initiated, agree with a passenger

on a fare for the transportation service. However, an agreed fare must not be higher than would

be charged under the fare schedule.

56(3) In order to ensure that an agreed fare is not higher than the fare schedule, the driver

must ensure that the taxi meter is operating while the transportation service is being provided. If

the agreed fare is higher than the fare shown on the meter at the termination of the trip, driver

must charge the fare shown on the meter.


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57 Obligation to accept passengers and drop off at preferred destination

57(1) Subject to section 59 (Mandatory pre-payment authorized), a taxi driver must not refuse

a request for service or refuse to drop a passenger at the passenger’s preferred destination

unless, based on the circumstances, the taxi driver reasonably believes that there is a danger to

his or her personal safety or of serious damage to property in accepting the request for service

or dropping off the passenger at the passenger’s preferred destination.

57(2) The fact that a prospective passenger is accompanied by a service animal is not

sufficient to support a reasonable belief that there is a danger to the driver’s personal safety or

of serious damage to property. In this subsection, a service animal means an animal that has

been trained to provide assistance to a person with a disability that relates to that person's

disability.

57(3) If a taxi driver refuses a request for service or refuses to drop off a passenger at the

passenger’s preferred destination, he or she must immediately provide verbal notice of the

refusal or failure to the dispatcher with whom the driver is registered.

58 Mandatory pre-payment authorized

58(1) Despite section 58 (Obligation to accept passengers and drop off at preferred

destination), a taxi driver may refuse to provide a transportation service unless a passenger pre-

pays the fare if

(a) the transportation service is being provided during hours of the day and days of

the week designated by the designated employee as being those during which

pre-payment may be required by taxi drivers; or

(b) the driver believes on reasonable grounds on the basis of past behavior that the

passenger is unable or unwilling to pay the fare;

and the pre-payment required by the driver is no more than that authorized in a zone structure

established by the designated employee.

58(2) If the fare as determined in accordance with the taxi meter is less than the amount of the

pre-payment, the taxi driver must refund the difference to the passenger. If the fare as

determined in accordance with the taxi meter is more than the amount of the pre-payment, the

passenger must pay the difference.

59 Obligation to return passenger property

59 A taxi driver must comply with the approved passenger property retrieval policy for the

dispatcher with whom he or she is registered and which has dispatched the passenger whose

property has been left behind.

60 Accessible taxi drivers must prioritize passengers using mobility aid

60(1) Subject to section 58 (Obligation to accept passengers and drop off at preferred

destination), an accessible taxi driver must not refuse service to individuals who use a


Page 29


wheelchair , or similar device which can accommodate a seated individual, and who cannot self-

transfer.

60(2) Unless actively engaged in providing a transportation service to another passenger, an

accessible taxi driver must respond to a request for service from a passenger who use a

wheelchair , or similar device which can accommodate a seated individual, and who cannot self-

transfer.

DIVISION 3 - PTP DRIVERS

61 PTP driver must be registered with PTP dispatcher

61 A PTP driver must not offer transportation services unless

(a) he or she is registered with a PTP dispatcher;

(b) is driving a PTP vehicle registered with that dispatcher; and

(c) has been dispatched by that dispatcher.

62 Obligation to return passenger property

62 A PTP driver must comply with the policy of the dispatcher with which he or she is

registered in respect of property left behind by the passenger.

63 Accessible PTP vehicles

63 A PTP driver must not hold out that the vehicle he or she is driving is accessible unless

(a) the vehicle meets the definition of accessible vehicle set out in this By-law; and

(b) the driver has undergone the training, or demonstrated to a level required by the

designated employee the skills referred to in clause (1)(c) and knowledge

reasonably considered by the designated employee to be necessary to provide

services to individuals who use a wheelchair , or similar device which can

accommodate a seated individual, and who cannot self-transfer.

DIVISION 4 – LIMOUSINE DRIVERS

64 Rules for limousine drivers

64 Notwithstanding clause 48(a) (Services exclusive to taxis), the driver of a limousine

(a) may accept street hails at the international airport in Winnipeg so long as

(i) zone fares for limousines hailed at the airport have been approved by the

designated employee and are posted and visible to passengers of the

limousine before they agree to pay for the transportation service; and


Page 30


(ii) the driver charges a fare no greater than is consistent with the zone fares

approved by the designated employee; and

(b) may accept payment by any means, including non-digital payments

PART 5

ADMINISTRATION AND ENFORCEMENT

DIVISION 1 – APPEAL BODY

65 Orders and decisions appealable

65(1) Upon payment of the applicable fee, an order or decision of the designated employee or

an enforcement officer that is subject to an appeal under the Charter may be appealed to the

Vehicle for Hire Appeal Board within 14 days after the appellant has received or is deemed to

have received the order or decision.

65(2) An appeal must be in writing and must be served on the designated employee

electronically, personally or by mail.

65(3) The designated employee and enforcement officers must comply with the requirements

of the Charter in providing information about an appeal whenever an appealable order or

decision is made.

66 Vehicle for Hire Appeal Board created

66(1) The Vehicle for Hire Appeal Board is hereby created, which consists of five individuals

appointed by Council. The members of the Board need not be members of Council.

66(2) Council shall appoint a Chair and a Vice-Chair of the Appeal for Hire Appeal Board from

among the members of the Board.

66(3) The Chair of the Appeal for Hire Appeal Board is authorized to call meetings of the

Board and to set dates for appeal hearings.

66(4) The Vehicle for Hire Appeal Board must sit in panels of three members selected by the

Chair of the Vehicle for Hire Appeal Board to hear an appeal. If the Chair or Vice-Chair is not

sitting on a panel, the Chair shall appoint a member to chair the appeal hearing.

66(5) All appeals are public.

66(6) A majority of a panel is required to determine the outcome of an appeal.

66(7) The Vehicles for Hire Appeal Board may develop procedures for hearing appeals and

rules for conducting its affairs that are consistent with this By-law.


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67 Appeals

67(1) When hearing an appeal, a panel of the Vehicle for Hire Appeal Board

(a) must treat the both appellant and the person whose decision or order is being

appealed fairly;

(b) must allow both the appellant and the person whose decision or order is being

appealed an opportunity to present their cases and to respond to the other

party’s case; and

(c) is not bound by the rules of evidence or any other law applicable to judicial

proceedings and may determine the admissibility, relevance and weight of

evidence.

67(2) Subject to subsection (3), the Vehicles for Hire Appeal Board must use the same criteria

and standards for deciding an appeal as this By-law requires the decision-maker to use when

making the decision being appealed.

67(3) When hearing an appeal concerning

(a) the refusal of the designated employee to issue or renew, or to cancel, a taxi

driver’s licence;

(b) an individual’s disqualification from being registered as a PTP driver; or

(c) the suspension or termination of the individual’s registration as a PTP driver;

due to the fact that

(d) he or she has been convicted within the previous 10 years of a relevant criminal

offence and a record suspension (pardon) has not been issued in respect of that

offence;

(e) has been convicted within the previous 10 years of a major driving offence; or

(f) is registered on the child abuse registry;

the Vehicle for Hire Appeal Board must consider whether the nature of the criminal offence, the

major driving offence or the actions that resulted in the registration on the child abuse registry

justify denying the individual the taxi driver’s licence or the registration, as the case may be. If,

on appeal, the Vehicles for Hire Appeal Board decides to authorize the issuance of a licence or

a registration, it may impose conditions on the licence or registration.

67(4) A decision by the Vehicle for Hire Appeal Board concerning an appeal is final and no

appeal may be taken in respect of the decision.


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68 Renumeration for non-councillor members of the Appeal Board

68 Members of the Vehicles for Hire Appeal Board who are not members of Council shall

be paid the following remuneration by the City for time spent in attendance at appeal hearings

or meetings of the Board:

(a) Chair and Vice Chair:

(i) $190.00 for appeals or meetings of four hours or less;

(ii) $336.00 for appeals or meetings of more than four hours in length;

(b) other members:

(i) $109.00 for appeals or meetings of four hours or less;

(ii) $192.00 for appeals or meetings of more than four hours in length.

DIVISION 2 - LICENCES

69 Licence expiry

69(1) Subject to subsection (2), unless renewed prior to the date of its expiry, a licence issued

under this By-law or under The Taxicab Act, RSM 1987, c. T10, terminates on its expiry date.

69(2) A taxi licence issued under this By-law does not terminate until 30 days after its expiry

date but the licence holder is subject to a late payment fee if the licence is not renewed prior to

its expiry date.

70 Licence holders must comply with licence conditions and restrictions

70(1) The holder of a licence must comply with all terms, restrictions or conditions imposed on

the licence by the designated employee.

70(2) If a licence issued under this By-law is suspended, the holder of a licence must not

engage in the activities authorized by the licence during the period of its suspension.

70(3) Without restricting the general nature of subsection (2), a person must not

(a) dispatch, or offer to dispatch, a taxi if his or her taxi dispatcher’s licence is

suspended;

(b) dispatch, or offer to dispatch, a PTP if his or her PTP dispatcher’s licence is

suspended;

(c) offer or provide transportation services in, or dispatch, a taxi if the taxi licence in

respect of that vehicle is suspended;


Page 33


(d) as the owner of a taxi, allow it to be used to provide transportation services or to

be dispatched if the licence in respect of that taxi is suspended; or

(e) offer or provide transportation services in a taxi if his or her taxi driver’s licence is

suspended.

DIVISION 3 – POWERS OF ENFORCEMENT AND ADMINISTRATION

71 General power of designated employee and enforcement officers

71 The designated employee and enforcement officers to whom these powers have been

delegated by the designated employee may conduct inspections and take steps to administer

and enforce this By-law or remedy a contravention of this By-law and to provide services or do

work in accordance with the Charter and, for these purposes, have the powers of a “designated

employee” under the Charter.

72 Powers of designated employee

72(1) In order to administer and enforce this By-law, the designated employee is granted the

powers and authorities reasonably required to administer and enforce this By-law.

72(2) Without restricting the general nature of subsection (1) or the authority given to the

designated employee in other provisions of this By-law, the designated employee is granted

authority to

(a) appoint enforcement officers;

(b) issue licences referred to in the By-law, including licence cards or other evidence

that a licence has been issued;

(c) create application forms and other forms for the purpose of administering the By-

law;

(d) conduct, and to authorize enforcement officers to conduct, inspections and audits

without notice of all dispatchers, vehicles and drivers that are regulated by this

By-law;

(e) receive, consider and – where he or she considers it appropriate - investigate

complaints or allegations that a contravention of this By-law has taken place;

(f) suspend or cancel licences issued under this By-law as provided in section 75

(Suspensions and cancellations) and section 76 (Immediate suspensions);

(g) grant a provisional licence, which must expire no later than May 31, 2018, to a

dispatcher who, despite making good faith and reasonable efforts to do so,

requires additional time after the date this By-law comes into effect to meet the


Page 34


requirements of clause 8(1)(c) (Qualifications for dispatcher – data security),

clause 8(1)(d) (Qualifications for dispatcher – complaints procedure) or section

14 (Dispatcher records); and

(h) impose, as a condition of the provisional licence referred to in clause (g), the

requirement that the dispatcher take interim measures to meet the intent of

clauses 8(1)(c) or (d) or section 14 until full compliance can be achieved.

72(3) Without restricting the general nature of subsection (1) or the authority given to the

designated employee in other provisions of this By-law, the designated employee is also

granted authority

(a) upon payment of fees which are pro-rated to reflect shorter terms, to issue

licences for a period of less than one year so that annual licences are renewable

at various points throughout the year;

(a) to establish insurance requirements for dispatchers;

(b) to establish mandatory or optional mechanisms for regulated persons to meet

reporting requirements;

(c) to prescribe or create mandatory signs and notices;

(d) to require that taxis be marked or signed in specified ways and to approve or

reject signage and markings proposed for taxis;

(e) to approve the equipment required to be installed in a vehicle in order to be

issued a taxi licence under clause 38(1)(g);

(f) to establish the duration of time a recording from a camera in a taxi must be

preserved before it can be destroyed;

(g) to establish appropriate levels of skills and knowledge necessary to be licenced

as a taxi driver, and tests to determine whether an applicant or licence holder has

the required level of those skills and that knowledge;

(h) to determine the type and quantity of training required of taxi drivers and

applicants for a taxi driver licence;

(i) to determine whether an applicant for a taxi driver’s licence or taxi driver’s licence

holder must undergo training or may instead demonstrate the skills and

knowledge necessary to be licenced as a taxi driver;

(j) to determine the level of English language proficiency necessary for taxi drivers;


Page 35


(k) to determine whether training should be required of PTP vehicle drivers and, if

so, to determine the quality and quantity of such training;

(l) to impose requirements for adequate protection of personal information by

dispatchers, drivers and vehicle owners;

(m) to determine standards and qualifications for vehicles to be considered

limousines for the purposes of this By-law;

(n) subject to section 77 (Suspending or terminating PTP driver or vehicle

registration), to require that a dispatcher cancel the registration of a driver and to

prohibit all dispatchers from registering that individual;

(o) to manage transitional issues associated with the implementation of this By-law,

including, without restricting the general nature of this authority, determining

when a provision of this By-law is in force prior to the coming into force of this By-

law pursuant to section 85 (Transitional matters); and

(p) to establish and to conduct a lottery process referred to in subsection 42 (Taxi

licences limited in number) and to issue new licences using that process.

72(4) Actions taken by the designated employee under subsection (3) are effective only when

they have been set out in a written document which is:

(a) dated and signed by the designated employee;

(b) filed with the Office of the City Clerk;

(c) posted on the City’s website.

72(5) Actions taken by the designated employee under subsection (3) continue in effect until a

termination date specified in the written document or until they are revoked or replaced by

another written document that meets the requirements of subsection (4).

73 Enforcement authority

73(1) Subject to section 75, if the designated employee determines that a contravention of this

By-law, other relevant legislation or conditions imposed on a licence has occurred, or the

licence holder has acted in a manner contrary to the public interest, he or she may do one or

more of the following:

(a) reprimand the licence holder;

(b) order that the licence holder take specific actions or measures, including

undergoing training or obtaining supervised practical experience;

(c) impose conditions on the licence;


Page 36


(d) suspend the licence for a period of less than one year in accordance with section

74 (Licence suspensions and cancellations);

(e) cancel the licence in accordance with section 75 (Licence suspensions and

cancellations);

(f) require the licence holder to pay all or part of the costs of the hearing and any

investigation carried out in respect of the contravention.

73(2) If a Designated Officer imposes conditions on a licence under clause (1)(c), the

conditions:

(a) must be related to the criteria for issuing the license or administering or

enforcing this By-law;

(b) may take into account the previous relevant conduct of the applicant.

73(3) In addition to, or as an alternative to, any enforcement carried out under subsection (1),

and without any need for a hearing, the designated employee or an enforcement officer may

initiate by-law enforcement proceedings under The Municipal By-law Enforcement Act, C.C.S.M.

c. M245 or The Provincial Offences Act, C.C.S.M. c. P160, as the case may be.

74 Licence suspensions and cancellations

74(1) The designated employee may cancel or suspend a licence issued under this By-law if

(a) the licence holder has failed to comply with this By-law, other relevant legislation,

conditions imposed on the licence or an order issued by an enforcement officer;

(b) allowing the licence holder to continue to hold the licence poses a danger to

drivers, passengers or the general public;

(c) the licence holder has provided false information on a material matter when

applying for the licence or when engaged in mandatory reporting;

(d) information on which the decision to issue the licence was based was incorrect

and the licence would not have been issued had the correct information been

known;

(e) the licence holder does not meet the requirements for holding a licence;

(f) the past conduct of the licence holder creates a reasonable belief that the licence

holder will not in the future act in compliance with this By-law, other relevant

legislation or conditions placed on the licence;


Page 37


(g) If the person holds a taxi driver’s licence under this By-law, the person has been

charged with a major driving offence or a relevant criminal offence since the

licence was issued or last renewed; or

(h) The licence holder has acted in a manner contrary to the public interest.

74(2) The designated employee must cancel a taxi driver’s licence issued under this By-law if

the licence holder

(a) has been convicted of a relevant criminal offence within the past 10 years;

(b) has been convicted of a major driving offence within the past 10 years; or

(c) Is registered on the child abuse registry.

74(3) Before suspending or cancelling a licence under subsections (1) or (2), the designated

employee must hold a hearing into the matter at which the licence holder is given an opportunity

to respond to the allegations and provide reasons why the licence should not be suspended or

cancelled.

74(4) At least 7 days before the hearing referred to in subsection (3), the designated

employee must, in compliance with The City of Winnipeg Charter, give a notice to the licence

holder

(a) specifying the date, time and place of the hearing;

(b) setting out the fact that the hearing could result in the suspension or cancellation

of the person’s licence,

(c) Identifying in general terms the alleged actions or inactions and circumstances

which, if found to be factual, would justify the suspension or cancellation; and

(d) indicating that the licence holder has a right to attend the hearing, be represented

by legal counsel or an agent, challenge the truth of the allegations being made,

and make arguments as to why the licence should not be suspended or

cancelled.

74(5) If the licence holder fails to attend the hearing on the time and date set out in the notice,

the designated employee may nonetheless hold the hearing in the absence of the licence holder

if he or she is satisfied that the licence holder was properly served with the notice required by

subsection (3).

74(6) If a designated employee decides to cancel a licence under this section, he or she must

identify a date before which, or a time frame within which, the holder is not permitted to reapply

for that licence.


Page 38


74(7) A decision concerning the suspension or cancellation of a licence must be sent to the

licence holder in accordance with the Charter and is subject to appeal to the Vehicle for Hire

Appeal Board.

75 Immediate suspensions

75(1) In addition to the authority to suspend a licence under section 75 (Licence suspensions

and cancellations), if the designated employee or an enforcement officer forms the reasonable

belief that a licence holder or taxi is in contravention of this By-law and

(a) the contravention poses an immediate danger to a vehicle for hire driver, a

passenger or the public;

(b) the contravention involves the failure of a dispatcher, vehicle owner or driver to

provide information or records to the designated employee;

(c) the contravention involves mandatory equipment malfunctioning; or

(d) the contravention is a failure to submit a vehicle for an inspection or to comply

with another order of an enforcement officer;

he or she may order that the licence holder remedy the contravention immediately and may

suspend the licence holder’s licence immediately until such time as the designated employee or

enforcement officer is satisfied that it has been remedied.

75(2) The fact that a contravention has been corrected and an immediate suspension has

been withdrawn under subsection (1) does not preclude enforcement action under section 74

(Enforcement authority) or section 78 (Penalties for offences).

76 Suspending or terminating PTP driver or vehicle registration

76(1) The designated employee may require that a dispatcher terminate or suspend the

registration of a driver or a PTP vehicle, or prohibit all dispatchers from registering that driver or

vehicle, or both.

76(2) The designated employee may only act under subsection (1) if the designated employee

concludes on reasonable grounds that

(a) the driver or vehicle did not at the time of registration or does not currently qualify

to be a PTP driver or vehicle under section 33 (Criteria for driver registration with

PTP dispatcher); or

(b) the driver has been charged or convicted of a major driving offence or relevant

criminal offence since being registered.

76(3) Before acting under subsection (1), the designated employee must hold a hearing and

subsections 74(2) to (6) apply, with necessary changes, to that hearing.


Page 39


DIVISION 4 – PENALTIES

77 Penalties for offences

77(1) Subject to the Municipal By-law Enforcement Act (MBEA) Enabling By-law, a person

who contravenes a provision of this By-law that is referred to in Schedule A of the Municipal By-

law Enforcement Act (MBEA) Enabling By-law must pay the penalty for that contravention set

out in that Schedule.

77(2) Notwithstanding subsection (1), a person who contravenes a provision of this By-law

referred to in Schedule “A” of the Municipal By-law Enforcement Act (MBEA) Enabling By-law

may pay a reduced consent payment in the amount set out in the applicable column of

Schedule “A” within 14 days after the date the ticket or Information alleging the contravention

was issued, and thereafter will not be prosecuted for the contravention.

DIVISION 5 - ADDRESS FOR SERVICE

78 Address for Service

78(1) The holder of a licence issued under this By-law may be served at the address provided

to the designated employee in the person’s application or most recent renewal, unless the

licence holder has provided a more recent address since that time, in which case the

designated employee or enforcement officers may use that address for service of documents.

78(2) Where service of documents, notice or orders is required on a person who does not hold

a licence issued under this By-law, the following shall be used:

(a) if the person owns a vehicle in respect of which the document, notice or order is

being served or sent, the address maintained by Manitoba Public Insurance in

respect of that vehicle;

(b) in all other situations, the last known address for the person.

PART 6

MISCELLANEOUS

DIVISION 1 - CONSEQUENTIAL AMENDMENTS

79 Taxicab Licence Fee By-law repealed

79 The Taxicab Licence Fee By-law No. 6123/93 is repealed.

80 SPC on IRPW given responsibility for vehicles for hire policy

80 The City Organization By-law No. 7100/97 is amended by adding the following

subclause after subclause 13(a)(xii):

(xiii) vehicles for hire.


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81 MBEA Enabling By-law amended

81 The Municipal By-law Enforcement Act (MBEA) Enabling By-law No. 59/2016 is

amended by adding the table set out in Schedule A to this By-law to Schedule A of the

Municipal By-law Enforcement Act (MBEA) Enabling By-law immediately following the table

setting out provisions in the Vacant Buildings By-law.

82 Winnipeg Parking By-law amended

82 Subsection 11(3) of the Winnipeg Parking By-law No. 86/2016 is replaced with the

following:

11(3) No vehicle other than a taxi licenced under the Vehicles for Hire By-law may be

stopped or parked in a space designated by a traffic control device for taxi or taxicab

parking.

DIVISION 2 - COMING INTO FORCE

83 Coming into force

83 Subject to section 85, this By-law comes into force on February 28, 2018.

84 Transitional

84 Despite section 84 (Coming into force) and pursuant to subsection 11(1) of The Local

Vehicles for Hire Act, provisions of this By-law are hereby made effective prior to the coming

into force of this By-law to the extent that it is necessary for them to be effective earlier in order

for the By-law as a whole to be effective and operational on that date.

DONE AND PASSED this 13th day of December, 2017.


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THIS IS SCHEDULE A TO

THE VEHICLES FOR HIRE BY-LAW NO. /2017

Vehicle for Hire By-law, By-Law No. /2017

Administrative Penalty

Provision Contravention Administrative

Penalty ($) Discounted Amount ($)

s.4(1) Provide transportation services without a license 500 250

s.4(2) Allow provision of transportation services without a license

1000 500

s.4(3) Dispatch a vehicle without a license 1000 500

s.5 Failure to pay a fare 500 250

s.6 Dispatch or offer to dispatch vehicle for hire without a valid dispatcher license

1000 N/A

s.7 Dispatch an unlicensed or unregistered vehicle for hire or driver

1000 N/A

s.10(1) Failure to establish or maintain approved data security measures

1000 N/A

s.10(2) Make changes to data security measures without approval

1000 N/A

s.10(3) Failure to comply with an order to make changes to data security measures

1000 500

s.11(1) Failure to establish or maintain an approved property retrieval process

1000 N/A

s.11(2) Make changes to property retrieval process without approval

500 250

s.11(3) Failure to comply with an order to make changes to a property retrieval process

1000 500

s.12(1) Failure to establish or maintain an approved complaints response process

1000 500

s.12(2) Failure to maintain complaints response process records

1000 500

s.12(2) Failure to make records available within required time

1000 500

s.12(3) Make changes to a complaints response process without approval

500 250

s.12(4) Failure to comply with an order to make changes to a complaints response process

1000 500

s.13(1) Failure to maintain dispatch insurance 1000 N/A

s.13(4) Failure to provide proof of insurance within required time

500 250

s.14(1) Failure to maintain required vehicle records 1000 500

s.14(1)(e) Failure to maintain required driver records 1000 500

s.14(2) Failure to retain required records for required period 1000 500

s.14(3) Failure to provide records within approved time 500 250


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s.14(4) Failure to provide required records on license suspension, invalidation or termination

1000 N/A

s.14(5) Failure to make required records available for inspection

500 250

s.15(a) Failure to report change in driver registration with dispatcher

500 250

s.15(b) Failure to report information regarding convictions and charges

1000 N/A

s.16 Failure to provide required public information through a digital platform

1000 500

s.17 Failure to provide estimated time of arrival of requested vehicle

500 500

s.18 Failure to dispatch taxis in order of request 500 250

s.19(1) Failure to immediately dispatch an accessible taxi for hire to passenger identifying a need for such a vehicle

500 N/A

s.19(3) Offering to dispatch accessible taxis without accessible taxis available for service

1000 N/A

s.21 Unauthorized dispatch of a taxi 1000 500

s.22(a) Dispatch or offer to dispatch a taxi by a non-digital platform

1000 500

s.22(b) Dispatch of unregistered taxi or taxi driver 1000 500

s.23 Failure to preserve camera records for required time period

1000 N/A

s.23 Failure to turn over camera records on request 1000 N/A

s.24 Failure to provide 24/7 service 1000 N/A

s.25 Failure to ensure required information is correctly displayed in taxi registered to the dispatcher

1000 500

s.26 Failure by dispatcher to report refusal of service within 24 hours of receipt of report.

1000 500

s.26 Failure to report all required information regarding a refusal of service

1000 500

s.27 Failure to report change in eligibility of drivers registered with dispatcher

1000 500

s.28 Dispatch of PTP or limousine without authorization 1000 500

s.29 Dispatch of an uninsured vehicle 1000 500

s.30 Use of a non-digital platform to dispatch a PTP other than a limousine

1000 N/A

s.31 Failure to issue identification card to PTP driver registered with the dispatcher

500 250

s.32(1) Failure to provide required information to prospective passenger at time of request for service

500 250

s.32(2)(a) Failure to provide driver information to person requesting PTP service

500 250

s.32(2)(b) Failure to provide vehicle information to person requesting PTP service

500 250


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s.32(2)(c) Failure to provide estimate of total cost of PTP service/

500 250

s.32(3)(a) Failure to identify service limitations through digital platform

1000 500

s.32(3)(b) Failure to identify that payment may only be made through the digital platform

500 250

s.32(3)(c) Failure to outline the complaints process on the digital platform

500 250

s.32(3)(d) Failure to provide a process for a prospective passenger to accept or refuse the transportation service

1000 500

s.32(3)(d) Failure to maintain records of acceptance and refusal of service

1000 500

s.32(3)(e) Failure to provide a secure payment mechanism through the digital platform

1000 N/A

s.32(3)(f) Failure to provide a receipt following the provision of service

1000 500

s.32(3)(f) Failure to provide required information on the receipt 500 250

s.33(1) Registration of PTP driver without required documentation

1000 N/A

s.33(2) Registration of an ineligible driver (convictions) 1000 N/A

s.33(3) Registration of an ineligible driver (child abuse registry)

1000 N/A

s.33(4) Registration of an ineligible driver (major driving offence)

1000 N/A

s.33(5) Failure to notify designated employee of charges against a prospective driver

500 N/A

s.33(5) Registration of potentially ineligible driver without approval

1000 N/A

s.33(7) Registration of driver without required consent regarding personal information release

1000 N/A

s.33(8) Registration of a PTP driver without required training 500 250

s.34(1) Failure to require updated driver eligibility documentation

1000 500

s.34(1) Failure to terminate PTP driver registration if information not provided by driver

1000 500

s.34(2) Failure to terminate an ineligible driver PTP registration.

1000 500

s.34(3) Failure to comply with order to terminate PTP driver registration

1000 500

s.35(1) Registration of accessible PTP driver without proof of required training

500 250

s.35(2) Failure to terminate existing registration of accessible PTP driver without proof of required training

500 250

s.36(1) Registration of an ineligible vehicle (PTP) 1000 500

s.36(2) Failure to terminate PTP vehicle registration where required eligibility documentation is not provided

1000 500


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s.36(3) Failure to comply with order to terminate PTP vehicle registration

1000 N/A

s.37(a) Provision or offer of transportation by means of a street hail without a licence and registration.

500 250

s.37(b) Provision or offer of transportation by means of dispatch through a non-digital platform without a valid taxi licence

500 250

s.37(c) Provision or offer of transportation in exchange for compensation by non-digital methods without a valid taxi licence

500 250

s.43(3) Transfer of a taxi licence to an ineligible vehicle 1000 N/A

s.45(1) Failure to ensure taxi meets qualifications for licensing while in operation

1000 500

s.45(2) Failure to post required camera signage in taxi 1000 500

s.45(3) Failure to comply with signage and marking requirements

1000 500

s.45(4) Failure to have taxi inspected annually 1000 N/A

s.45(4) Failure to submit vehicle for inspection as required 1000 500

s.46(1)(a) Operating a vehicle for hire without registering with a licenced dispatcher

500 250

s.46(1)(b) Operation of a vehicle for hire without valid driver’s licence

1000 N/A

s.46(1)(c) Operation of a vehicle for hire while ineligible (conviction)

1000 N/A

s.46(1)(d) Operation of a vehicle for hire while ineligible (driving offences)

1000 N/A

s.46(2) Failure of driver to notify dispatcher as required. 1000 500

s.47 Operation of a taxi without valid taxi driver licence 500 250

s.52 Failure to display taxi driver licence as required 250 125

s.53(a) Failure to notify designated employee (convictions) 1000 N/A

s.53(b) Failure to notify designated employee (charges) 1000 N/A

s.53(c) Failure to notify designated employee (child abuse registry)

1000 N/A

s.53(d) Failure to notify designated employee (licence suspension)

1000 N/A

s.53(e) Failure to notify designated employee (medical condition)

1000 N/A

s.54(2) Failure to provide dispatcher with information regarding street hails in required timeframe

250 125

s.56(a) Failure to take most economical route 500 N/A

s.56(b) Failure to provide reasonable assistance to a passenger

500 250

s.57(1) Charge a fare not in accordance with the fare schedule

1000 500

s.57(2) Negotiating a fare in excess of what would be charged under the fare schedule

1000 500

s.57(3) Failure to operate the meter during service where a negotiated fare is in place.

1000 500


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s.58(1) Refusal to provide taxi service without reasonable grounds

1000 N/A

s.58(3) Failure to notify dispatcher of notice of refusal of service

1000 500

s.59(2) Failure to refund difference between fare as shown on meter and pre-payment

1000 500

s.60 Failure to comply with dispatcher’s property retrieval policy

1000 500

s.61(1) Refusal of service to eligible passenger by accessible taxi driver

1000 N/A

s.61(2) Failure to respond to request for accessible taxi service

500 250

s.62(a) Offering PTP services without registering with a PTP dispatcher

1000 500

s.62(b) Offering PTP services in an unregistered vehicle 1000 500

s.62(c) Offering PTP services without being dispatched by a licenced dispatcher

1000 500

s.64(a) Holding out of ineligible vehicle as accessible 1000 500

s.64(b) Holding out of ineligible driver as accessible PTP driver

500 250

s.65(a)(ii) Charging a fare greater than the approved zone fare (limo)

1000 500

s.70(1) Failure to comply with terms, restrictions or conditions of licence

1000 500

s.70(2) Operation under licence during a period of suspension

1000 N/A


Page 46


CAC (MPI) 2

Volume and Chapter:

2018 Interim Application Page No.: 3 and 14

Topic: Vehicles for Hire rate setting

Sub Topic: Industry experience to date

Issue: Jurisdictional scan


To date the Corporation has minimal claims experience (page 14) with respect to

setting rates for the vehicles for hire industry in Manitoba. Because of the VFH Act

becoming law on February 1, 2018 MPI is required to provide compulsory insurance

for vehicles for hire. Vehicle for hire insurance is provided by the private property and

casualty (PC) insurance industry in other provinces (eg. Ontario and Alberta, etc.).

Question:

Please advise whether MPI has performed a jurisdictional scan to determine and

assess how the private PC companies rate the vehicle for hire exposures both from a

physical damage and injury perspective. If yes, please file a copy of the jurisdictional

scan. If not, please explain why MPI has not performed the jurisdictional scan to

inform the rate setting process relative to other jurisdictions?


To better understand how other jurisdictions determine vehicles for hire risk

exposures and the corresponding rate setting process.


RESPONSE:

MPI performed a jurisdictional scan to identify existing Transportation Network

Company (TNC) insurance coverages in Canada. Please see PUB (MPI) 1 for a

summary of the insurance models used in Ontario, Alberta, and Quebec and

approximate insurance costs. This included identifying insurance providers in each

jurisdiction and the type of coverages provided.



CAC (MPI) 3

Volume and Chapter:

2018 Interim Application Page No.: 4

Topic: Fees

Sub Topic:

Issue: MPI proposes no changes to fees


On page 4 it states:

“Further, MPI proposes: Other than as specified above, no change to service fees for changing

coverage

No change to Miscellaneous permits and certificates

No change to driver license premiums

No change to fleet rebates and surcharges”

Question:

a) Please explain in detail why there would be no changes to the fees as described in

the Preamble.

b) Please advise whether MPI is considering changes to the fees in a) in their 2019

GRA?


To clarify the reasons and rationale for not proposing changes to the fees listed in the

Preamble.



RESPONSE:

a) There are no proposed changes to the service fees other than “Waiving of service

fees for change of insurance for vehicles for hire” to avoid creating barriers and to

allow flexibility for those Manitobans participating in providing vehicles for hire

services. Hence, MPI will waive the fee for Manitobans to change insurance use to

vehicle for hire and/or change the time bands selected, but will maintain all other

service fees to ensure vehicles for hire are treated consistently in relation to all

other service fees.

b) Pursuant to directive 11.6 of PUB Order No. 130/17, a Service Fee Review and

associated recommendations for service fees changes will be finalized and

submitted with the 2019 General Rate Application (GRA).



CAC (MPI) 4

Volume and Chapter:

2018 Interim Application Page No.: 4 and 10

Topic: Time Bands

Sub Topic:

Issue:


To accommodate the Vehicles for Hire industry MPI proposes a number of time bands.


“The proposed insurance framework will offer increased flexibility of insurance coverage to existing taxi/livery service vehicles, as well as new vehicles for hire customer. Time bands for coverage of vehicles for hire operation will allow operators to select desired times of coverage, tailoring their insurance costs to meet their operating needs.”


“The insurance policies will be based on time bands permitting vehicles for hire operation. Each of the 4 sub-categories (passenger, taxi, etc.) will have the same 4 time bands available to them. Customers can self-select any combination of 4 time bands and premiums will be based on the number of time bands selected. Customers will have the option to purchase 1, 2, 3, or all 4 time bands. At 4 time bands, a vehicle for hire has the flexibility to operate 24 hours a day, seven days a week.”

Question:

a) Please explain in detail how the time bands were determine and if they were

determined in consultation with the current taxicab industry.

b) Please explain if similar time bands are operational in other jurisdictions.

c) Please elaborate as to whether the proposed time bands are a precursor to “Pay as

you Drive” insurance coverage for insurance customers other than Vehicles for Hire

customers.




To better understand the rationale supporting the proposed time bands.

RESPONSE:

a) Please see PUB (MPI) 6 for detail on the time bands. Please see CAC (MPI) 11 for a

summary of the consultations related to the Vehicle for Hire (VFH) framework.

b) MPI is not aware of similar time bands being operational in other jurisdictions, but

in the Corporation’s view, these time bands offer the greatest flexibility to VFH

operators while aligning claims risk to the premiums charged.

c) The proposed time bands are not a precursor to “Pay as you Drive” insurance

coverage for other insurance customers.



CAC (MPI) 5

Volume and Chapter:


Topic: Rating Models

Sub Topic:

Issue: See Preamble


MPI developed a number of rating models as per page 6:

“MPI developed and evaluated several rating models within the context of the compulsory nature of Basic, and MPI’s intent to limit cross-subsidization between vehicles for hire and the rest of Basic.”

Question:

Please describe the various rating models that were evaluated and provide the

rationale for the selected rating model.


To better understand the various rating models that MPI evaluated that resulted in the

selected model.

RESPONSE:

The models that were evaluated were:

1. Time Restricted Model (Time Band)

This model results in the development of multiple Vehicles for Hire (VFH) insurance

uses based on the time of day the vehicle is authorized to operate as a VFH. This is

MPI’s proposed model, where a driver can select up to four time bands. Full details



and rationale for the proposed rating model are provided in the Interim

application.

2. Blended Rate

This model uses a flat rate across each territory blending 90% of the territory’s All

Purpose rate and 10% of the current taxicab territory rate. This model is a similar

but limited version of the Time Restricted Model. The blended rate model does not

prevent cross subsidization of premiums for vehicles for hire which operate in

excess of 10% of the time. Also, the model is not actuarially based because it

assumes the same risk as taxis when vehicle for hire drivers are operating on the

platform.

3. Driver Safety Rating (DSR) Driver Premium

In this model the Basic insurance rate is determined for the VFH pool but claims

and driving infractions are additionally surcharged to the driver via the driver

premium. This model is complex and costly to implement, has challenges from

claims administration, significant regulatory amendments, would introduce lack of

symmetry with other vehicle types and insurance uses, and would be difficult from

a customer communication perspective.

4. Hybrid

This model is similar to the Blended Rate model but this model determines a rate

for each rate group (rather than flat rated) to reflect the different vehicles that

may participate as a VFH. This model creates two new insurance uses to identify

and separate full time VFH and part time VFH (using a maximum number of hours

per week to define part-time). The rate differential between the two categories

could be significant. An arbitrary number of hours (ex. 20hrs) would have to be

selected to define part time use, would not be actuarially based or fair and

equitable across all vehicles for hire, and would be difficult to enforce without

customized data sharing arrangements with individual Transportation Network

Company (TNC) platform providers.



5. Surcharge

This model is based on the existing off road vehicle (ORV) extension surcharges

applicable for ORV collision coverage where a surcharge percentage is added to the

base policy rate. Surcharges are determine based on driving behaviour over 3

years. Surcharges would be based on at-fault claims and driving convictions and

insurance coverage only applies to ‘named drivers’ of the vehicle. This model

therefore does not with the current framework for Basic compulsory auto

insurance. This model would also be more cumbersome for the customer and for

Autopac agents to administer the ‘usual’ drivers associated with insurance policy

particularly for the taxi industry.

6. Operating Hours

This model is similar to the Hybrid Model in that it introduces a restriction on the

number of hours operating as a VFH but keeps taxis and TNCs in separate

grouping. This model could be priced either via a flat pre-determined rate for the

TNC/Other or via premium load added to the base insurance premium (all-purpose

rate) based on hours operating as a TNC. This model is not fair and equitable to

the taxi industry.

7. DSR Premium

This model would create a new or supplemental DSR Vehicle Premium Discount

model specifically for VFH with movement up and down the scale based on current

DSR rules. Individual driving experience (claims/driving infractions) would continue

to be captured via the driver’s licence. This model is complex and costly to

implement, has challenges from claims administration, significant regulatory

amendments, would introduce lack of symmetry with other vehicle types and

insurance uses, and would be difficult from a customer communication perspective.



8. Umbrella Policy

This model would have MPI providing a commercial fleet policy to the TNC which

provides coverage for TNC drivers during the period they are operating on the TNC

platform. This model is not compatible with the Basic compulsory insurance

program which requires rating at the vehicle level for basic coverage (unless

specifically excluded by legislation). This model is also not consistent with the

basic rate making methodology and would circumvent the regulatory approval

process, which is not in the public interest.

9. Vehicles for Hire (VFH) Endorsement

This model provides Basic insurance (All Purpose) to vehicles and require those

operating as a VFH to purchase an endorsement allowing “carrying passengers for

compensation” as an extension product. This model is not compatible with the

Basic compulsory insurance program, which requires rating at the vehicle level for

basic coverage (unless specifically excluded by legislation). This model is also not

consistent with the basic rate making methodology and would circumvent the

regulatory approval process, which is not in the public interest.

MPI selected the Time Restricted (Time Band) model because it did not circumvent the

regulatory process and it best satisfied the following success criteria overall:

a) That the rating model fair and equitable

b) That the rating model is model actuarially-based

c) That the rating model is flexible enough to accommodate different regulatory

frameworks throughout the province as a result of Bill 30



CAC (MPI) 6

Volume and Chapter:

Page No.:

Topic:

Sub Topic:

Issue:


To-date MPI has minimal claims experience (page 14). One of the success criteria is

“Is the rating model actuarially based?” as stated on page 7:

“MPI established vehicles for hire Rates for Service in accordance with existing Basic rates to accommodate vehicles for hire insurance use in a way that is consistent and equitable based on prior rates experience. Experience-based rate adjustments will be used to maintain rates that are equitable as experience is gained with vehicles for hire insurance use. A new vehicles for hire insurance use will be created so that claims experience can be tracked separately from the private passenger vehicle pool.”

Question:

Please elaborate on the actuarially based soundness of the proposed Vehicles for Hire

rates.


To better understand the actuarial principles relied upon in setting the Vehicles for

Hire rates.

2018 Interim Application

Vehicle for Hire rates--actuarially based?

See preamble



RESPONSE:

As outlined in Vehicles for Hire VFH.3 Rate Setting Framework, the proposed rates for

each subcategory of the Vehicle for Hire pool are based on modifications to existing

PUB approved, actuarial-based rates from the 2017 and 2018 GRAs.

For the Taxi Vehicles for Hire (VFH), Limousine VFH, and Accessible VFH rating

categories, MPI has significant historical experience to support that the overall rates

charged for these categories are ‘best estimates’ of the loss exposure. MPI then made

reasonable adjustments to the existing rates, where necessary, to account for changes

in exposure caused by the creation of the new VFH insurance uses and time band

categories. These adjustments include:

Assumed reduction in loss exposure for Taxi VFH and Limousine VFH due to a

loss in market share

Assumed variable exposure from the selection of time bands

Assumed reduction is loss exposure from the introduction of DSR vehicle

premium discounts

MPI recognizes that these adjustments require varying levels of judgment; however,

MPI believes these adjustments are required to produce best estimate rates using the

available information. Going forward, the proposed rates for Taxi, Limousine, and

Accessible VFH will all be adjusted based on actual claims experience utilizing the

existing PUB approved rate making methodology.

For Passenger Vehicle for Hire, the proposed rates are calculated based on

modifications to the existing PUB approved, Major Class 1, All-Purpose Insurance Use

rates by rate group. The Major Class 1 rates in the 2017 and 2018 GRA were

calculated based on Accepted Actuarial Practice (AAP). MPI judgmentally applied a

‘load’ to these actuarially-based rates to account for the assumed increase in exposure

from varying levels of VFH exposure. MPI believes it is reasonable to assume an

increase in exposure over All Purpose use for Passenger VFH because:



Intuitively a vehicle would be expected to have higher loss exposure if the

vehicle is spending more time on the road as a VFH.

A jurisdictional scan supported the notion that an additional charge of

approximately 20% over All Purpose use was determined to be reasonable in

other jurisdictions.

Again, MPI believes these adjustments are required to produce best estimate rates

based on the available information. Going forward, the proposed rates for

Passenger VFH will be adjusted based on actual claims experience utilizing the

existing PUB approved rate making methodology.



CAC (MPI) 7

Volume and Chapter:


Topic: Service Fees

Sub Topic:

Issue: See preamble



“There will be no charge associated with changing the vehicle for hire operating time bands meaning customers can add or drop time bands as needed. For example:

Increasing or decreasing the number of time bands Changing the selected time band”

Question:

Please elaborate if brokers are handling increasing, decreasing and changing time

bands without charging a fee.


To better understand the broker fee structure as it relates to changing time bands.

RESPONSE:

Brokers handling increases, decreases and changes to vehicles for hire time bands will

not charge customers a transaction fee. MPI will pay the broker a flat fee

compensation for each transaction, in accordance with MPI’s current contractual

obligations.



CAC (MPI) 8

Volume and Chapter:


Topic: Comprehensive no-fault bodily injury coverage

Sub Topic:

Issue: See preamble



“Comprehensive no-fault bodily injury coverage will continue to apply to Manitobans injured in motor vehicle accidents including vehicles for hire accidents.”

Question:

Please elaborate on how the Personal Injury Protection Plan (PIPP) operates in the

context of the vehicles for hire industry. Additionally, please elaborate on the following

examples:

The injured vehicle for hire client is a Manitoba resident.

The injured vehicle for hire client is an Ontario resident.

The injured vehicle for hire client is a USA or UK resident.


To better understand the PIPP coverage as it relates to vehicle for hire clients.



RESPONSE:

Personal Injury Protection Plan (PIPP) provides no-fault motor vehicle bodily injury

accident insurance per Part 2 of the Manitoba Public Insurance Act (the Act). Section

71 of the Act specifies, subject to limited exceptions, that PIPP applies to any bodily

injury that is caused by an automobile.

Automobile accidents and bodily injury resulting from vehicle for hire use, including

taxi use today, falls within the scope of PIPP and is not excluded per section 71(2) of

the Act.

Manitoba residents are, pursuant to section 74 of the Act, entitled to PIPP for

automobile injuries occurring in Canada or the United States. Non-residents of

Manitoba are deemed to be Manitoba residents, and entitled to PIPP benefits, if they

are injured in Manitoba, while an occupant in a Manitoba registered automobile.

In summary, a vehicle for hire client, regardless of residency, who is injured in

Manitoba, while an occupant in a Manitoba registered automobile is entitled to PIPP.



CAC (MPI) 9

Volume and Chapter:


Topic: Basic Deductible decrease

Sub Topic:

Issue: See Preamble


MPI is proposing to decrease the deductible from $600 to $500 for taxicabs,

limousines and livery vehicles. On page 12 it states:

“As a result of this change, taxicabs, limousines and livery vehicles (former ‘x-plate’vehicles) will see Basic deductible reduced by $100. MPI is not proposing to increase vehicles for hire Basic insurance rates due to the decrease in deductible level from $600 (current deductible level for ‘x-plate’ vehicles) to $500 (vehicles for hire deductible level). The policy decision to lower the deductible level is meant to align vehicles for hire with the rest of Basic, and is justified based on an expectation of reduced risk exposure in these classes (see section VFH.3 for further details).”

Question:

a) Please provide a quantitative analysis supporting the rationale for not increasing

premium rates to cover the additional exposure of reducing the deductible by

$100.

b) Please elaborate if MPI is planning on reviewing the deductible levels in its next

GRA.


To better understand the rationale for not increasing premium rates to offset the

additional deductible decrease exposure of $100.



RESPONSE:

a) As described in Vehicles for Hire VFH.3, MPI has assumed that there will be an as

yet undetermined reduction in loss exposure for taxis and limousines as a result

of competition from Passenger vehicles for hire (VFH) and that this reduction in

exposure will offset the impact of decreasing the deductible from $600 to $500.

MPI believes that the assumption of reduced market share / exposure is

reasonable and required to produced best estimate rates; however, we cannot

produce a quantitative analysis to support this assumption because there is no

available data. Rates will be adjusted in future applications to reflect the actual

claims experience.

b) The deductible change for taxis and limousines is intended to create fairness and

equity across all types of vehicles for hire. No changes to deductibles for other

vehicles are proposed at this time and any future consideration of same would be

made as part of an overall evaluation of premium requirements and claims costs

in future years.



CAC (MPI) 10

Volume and Chapter:

2018 Interim Application Page No.:

Topic: Financials

Sub Topic:

Issue: Financial impact of changes proposed


Question:

a) Please elaborate on the overall financial impact to the Statement of Operations as

filed in Compliance Filing to Board Order 130/17, page 2 as it relates to the

changes proposed in the 2018 Interim Application (Vehicles for Hire), if any.

b) Please provide a quantitative analysis of the IT costs to upgrade AOL and CARS to

handle the Vehicle for Hire proposed changes.


To better understand the financial impact of the vehicle for hire proposed changes to

the Statement of Operations.

RESPONSE:

a) The proposed rates for the Vehicle for Hire classifications are intended to ‘break

even’ (i.e. 0% profit), and therefore, result in no material changes to the

Corporation’s forecasts. The estimated Information Technology (IT) costs, which

are outlined in part (b), were not included in the Statement of Operations as filed

in Compliance Filing to Board Order 130/17.



c) MPI’s Board of Directors approved the projected costs for amending the Autopac

On-Line (AOL) and Claims Administration & Reporting Systems (CARS) for new

Vehicles for Hire (VFH) insurance use are as follows:

Figure 1: Projected Corporate Costs for Amending the AOL and CARS Systems

for New Vehicle for Hire

The projected corporate costs for the VFH project will be treated as expenses, and

will minimally impact the years 2017/18 and 2018/19, and will be captured in

Insertions of Work. The estimated Basic impact for the years 2017/18 and

2018/19 are $256,000 & $140,000 respectively.”

LineNo. Project Phase Effort Hours Cost1 Phase 1: Inception and Planning 609 $46,3502 Phase 2: Elaboration 1295 $76,7753 Phase 3: Build and Development 3032 $158,4764 Phase 4: Testing 3364 $120,1005 Phase 5: Implementation and Warranty 570 $34,3006 Sub-TOTAL 8,870 $436,0017 Contingency at 20% $87,2008 Total $523,201



CAC (MPI) 11

Volume and Chapter:

2018 Interim Application Page No.:

Topic: Engagement

Sub Topic:

Issue: Engagement with stakeholders


Question:

Has MPI conducted any engagement or consultations with stakeholders, and

specifically with disability groups, regarding the Vehicle for Hire proposal? If so, please

provide the results of the engagement or consultations. If not, please indicate whether

MPI is planning stakeholder engagement or consultations regarding Vehicles for Hire

prior to the 2019 GRA.


To understand whether MPI has consulted stakeholders, including disability groups,

regarding the proposal for Vehicles for Hire.

RESPONSE:

MPI has conducted discussions with the following stakeholders:

The Winnipeg Community Taxi Coalition

Uber

Lyft

City of Winnipeg

Manitoba Infrastructure

Manitoba Crown Services



Indigenous and Municipal Relations

Motor Transport Board

Taxicab Board

At these discussions MPI reviewed a number of topics, including:

The overall Vehicles for Hire (VFH) rating model

Relevant legislation related to the basic, compulsory insurance program in

Manitoba, including first-party coverage extended to all Manitoba residents and

occupants of Manitoba-registered vehicles injured in motor vehicle collisions.

The rate-making and regulatory framework in Manitoba, including the role of

the PUB in approving basic insurance rates

Creation of a separate insurance use for VFH and sub-categories within that

classification to ensure rates charged are actuarially sound and to prevent no

cross-subsidization within the pool or by other vehicle classes

The time bands framework

Changes to the vehicle registration model and plating requirements for VFH

Adjustments to DSR eligibility and vehicle premium discounts

Service fees

MPI had no reason to consult with “disability groups” in regard to the interim

application for VFH rates so did not do so. With respect to issues of accessibility to

VFH services, consumer safety measures and other eligibility requirements for VFH

operations, the Local Vehicles for Hire Act confers the power to regulate the VFH

industry to Manitoba municipalities. Municipalities may make regulations tailored for

persons with disabilities, and consultation with disability groups is meaningful and

effective with in this context. For example, MPI understands that the City of Winnipeg

has considered such matters in By-law 129/2017, and that the City of Winnipeg

conducted consultations with disability groups. MPI’s Accessible VFH sub-category was

created to accommodate the municipal by-laws that are tailored to accessible vehicles.

MPI is planning to hold further stakeholder engagement and information sharing

sessions with law enforcement representatives and any other stakeholder group which

request a briefing regarding insurance rates for VFH prior to March 1, 2018.


VEHICLE FOR HIRE 2018 INTERIM APPLICATION

CLOSSING SUMBISSION

Manitoba Public Insurance

Consumers’ Association of Canada (Manitoba)

1

2

3

CLOSING SUBMISSION 4

VEHICLES FOR HIRE 5

2018 INTERIM APPLICATION 6

JANUARY 5, 2018 7

8

9

January 5, 2018 Vehicles for Hire - 2018 Interim Application Closing Submission


Table of Contents

Table of Contents ....................................................................................... 1

1 Introduction ................................................................................. 2

2 Interim Application due to compressed implementation timeline ......... 4

2.1 Full Testing During the 2019 GRA ................................................... 4

2.2 Variance Between Interim and Final Rates Refunded or Collected on a

Customer Account Basis................................................................. 4

3 Time Band model achieves key objectives ........................................ 6

3.1 Flexible and Straightforward ........................................................... 6

3.2 Fair and Equitable ......................................................................... 7

3.2.1 No New Registration Class and No More X-Plates .............................. 7

3.2.2 Consistent Coverage...................................................................... 7

3.2.3 The Model will Accommodate Different Municipal Regulations ............. 8

3.3 Model is Compliant with Manitoba’s Basic Insurance Program, Principles

and Legislation ............................................................................. 8

3.3.1 Private Insurance Models not Appropriate ........................................ 8

3.3.2 Per-Kilometer Model Does Not Fit Manitoba ...................................... 9

3.3.3 Oversight and Approval by the PUB Serves the Public Interest .......... 10

3.4 Supporting the Transition ............................................................. 10

4 Actuarially Based Rates ............................................................... 11

4.1 Consistency and Fairness Achieved by Using Existing Basic Rates ..... 11

4.2 Rates for Taxicab Limousines and Accessible Vehicles for Hire .......... 11

4.3 Rates for Passenger Vehicles for Hire (VFH).................................... 12

4.4 Vehicles for Hire (VFH) Insurance Use Will Form a New Pool ............. 13

4.5 Applying the Driver Safety Rating (DSR) will Encourage Safe Driving . 13

5 Financial impacts to MPI .............................................................. 15

5.1 Driver Safety Rating (DSR) Vehicle Premium Discounts Offset by Improved

Loss Experience .......................................................................... 15

5.2 Reduced Deductible for Taxis and Limousines Offset by Improved Loss

Experience ................................................................................. 15

5.3 Other Financial Impacts ............................................................... 16

5.4 Implementation Costs ................................................................. 16

6 TNC concerns addressed .............................................................. 17



1 INTRODUCTION

1 The Local Vehicles for Hire Act comes into force on February 28, 2018 and allows for a

new class of vehicles for hire in addition to existing taxicab/livery services.

2 As the provider of compulsory vehicle insurance in Manitoba, MPI must have Rates for

Service in place for new vehicles for hire, and for the existing classes of vehicles for

hire, for March 1, 2018.

3 MPI has developed an insurance rating model that achieves the following key

outcomes:

Complies with the compulsory and universal nature of Manitoba’s Basic

insurance program, principles and legislation

Provides for oversight and approval of rates associated with the model by the

PUB, to the benefit of public interest

Flexible and straightforward to enable vehicle for hire participation

Achieves equity and fairness for all vehicles for hire

Ensures that the premium paid is commensurate to risk in accordance with

accepted actuarial practice, and PUB approved rate-making methodologies

Allows the experience of each group to be tracked independently to facilitate

future rates driven by experience, thereby preventing cross subsidization within

the vehicle for hire pool and between other vehicle classes

Addresses the requirements for Transportation Network Companies (“TNCs”)

consistent with Basic’s principles and legislative and regulatory framework

4 MPI therefore submits that approval of the following, effective March 1st, 2018, is

appropriate:

Interim vehicles for hire Rates for Service for both the 2017/18 and 2018/19

insurance year based on rates approved in PUB Orders 162/16 and 130/17

respectively.

Allowing vehicle premium discounts for vehicles for hire.



Waiving service fees for change of insurance for vehicles for hire.

Allowing MPI to refund or collect any variance between interim and final

approved vehicles for hire Rates for Service with the final rates being

determined through the 2019 General Rate Application (GRA).



2 INTERIM APPLICATION DUE TO COMPRESSED

IMPLEMENTATION TIMELINE

5 Given the adequate alternative remedy available in the 2019 GRA, and the proposal to

true up any variance between interim and final approved vehicles for hire rates, MPI

submits that there is no prejudice to intervenors or interested parties as a result of

this interim application.

2.1 Full Testing During the 2019 GRA

6 As part of the 2019 GRA, MPI will include an application for 2017/18 and 2018/19

rates for service, as well as 2019/20 vehicles for hire Rates for Service.

7 MPI submits that including 2017/18 and 2018/19 Rates for Service in the 2019 GRA

will allow all interveners, interested parties and the public at large to fully test the

Rates for Service during the 2019 GRA. Parties with standing will be able to challenge

the evidence and bring their case to the PUB for determination of final vehicles for hire

Rates for Service. The PUB’s final determination on 2017/18 and 2018/19 rates would

be contained in the 2019 GRA Order.

2.2 Variance Between Interim and Final Rates Refunded or

Collected on a Customer Account Basis

8 MPI proposes that any variance between interim and final approved vehicle for hire

rates be rebated or collected on a customer by customer basis. This way, there would

be no risk to customers of paying higher than required rates, nor would there be any

risk to MPI associated with charging inadequate rates.

9 If there is a variance between interim and final rates, MPI will identify all vehicles for

hire customers and initiate a re-rating of the insurance policy. This will complete a

new insurance rating calculation process and the new approved rates will be used to

determine the appropriate insurance premium that should have been collected.



10 Whether the variance results in an increase or reduction in premium, MPI submits that

the associated balance should be applied to the respective customer account so that

each customer benefits from or is responsible for, any change in premium.



3 TIME BAND MODEL ACHIEVES KEY OBJECTIVES

11 MPI evaluated several rating models considering the compulsory nature of Basic, and

the intent to limit cross-subsidization between vehicles for hire and the rest of Basic.

MPI submits that the ‘time band’ model is:

a) Flexible and Straightforward

b) Fair and Equitable

c) Compliant with Manitoba’s legislative scheme

3.1 Flexible and Straightforward

12 The time band model allows all vehicles for hire customers to have the option to

purchase 1, 2, 3, or all 4 time bands. At 4 time bands, a vehicle for hire has the

maximum flexibility to operate at any time, 24 hours a day, seven days a week.

13 Each time band is designed to accommodate the hours of operation that vehicles for

hire drivers might prefer, while balancing the increased level of exposure from

operation between the four time bands. The selection of time bands is flexible, so

customers can tailor their operating periods and related insurance costs to fit their

desired vehicles for hire participation level.

14 The time bands were selected such that each additional time band equates to

approximately 25% additional claims exposure. However, for rating purposes only the

number of time bands selected is relevant, rather than the specific time bands

selected. The relative rate by level will eventually be adjusted based on actual claims

experience.

15 Consistent pricing of the time bands makes the model straightforward. Having a

different rate for each individual time band would create 15 different possible



combinations a customer would have to assess in making their buying decision. It

could also potentially lead to misunderstanding about why one time band is more or

less costly than another time band. Therefore, by having the same cost of coverage

for each individual time band, MPI has made it easier for customers to understand the

model and to make buying decisions.

3.2 Fair and Equitable

16 The proposed rate model applies consistently to TNCs, taxicabs and limousines, and

other formerly x-plated vehicles for hire. Any vehicles for hire driver can choose the

time band(s) that reflect the hours they wish to operate as a vehicles for hire and all

vehicles for hire will be subject to the same DSR incentives and deductible.

3.2.1 No New Registration Class and No More X-Plates

17 No new registration class, stickers, or plates will be created for vehicles for hire and

MPI will discontinue the registration classes used for existing taxis, limousines and

liveries. Therefore, MPI submits that all vehicles for hire will be treated consistently.

3.2.2 Consistent Coverage

18 All vehicles for hire will have Basic insurance coverage consistent with Basic’s all-

purpose passenger vehicle coverage.

19 All vehicles for hire will have a $500 deductible, reducing the current $600 deductible

for taxis and limousines by $100. This reductions is further supported on the

reasonable expectation that there will be reduced loss exposure for taxis and

limousines as a result of competition from Passenger vehicles for hire, and based on

the new incentives created for safe driving behaviour by extending vehicle premium

discount eligibility to the taxicab pool.



20 Comprehensive no-fault bodily injury coverage will continue to apply to Manitobans

injured in motor vehicle accidents and to non-Manitoban passengers in Manitoba

registered vehicles, injured in motor vehicle accidents in Manitoba - including those

involving vehicles for hire.

3.2.3 The Model will Accommodate Different Municipal

Regulations

21 The Local Vehicles For Hire Act determines that only the City of Winnipeg is specifically

required to establish by-laws to regulate vehicles for hire. However, each municipality

in Manitoba is responsible for regulating vehicles for hire within municipal boundaries

and so there may be a range of regulatory frameworks throughout Manitoba. As a

result, many variations of municipal regulatory frameworks may emerge over time.

22 MPI anticipates that the proposed model will be flexible enough to accommodate

different municipal regulatory frameworks.

23 Since each municipality is responsible for regulating vehicles for hire, stakeholders

should seek to work with municipalities on issues of accessibility, safety and eligibility.

3.3 Model is Compliant with Manitoba’s Basic Insurance Program,

Principles and Legislation

24 Legislation requires Manitobans to register vehicles and purchase Basic insurance

which includes Personal Injury Plan Protection benefits, third party liability and all

perils physical damage coverage.

3.3.1 Private Insurance Models not Appropriate

25 Currently in Canada, only Alberta, Ontario and Quebec allow ridesharing (vehicles for

hire) for compensation. Insurance for ridesharing vehicles in these jurisdictions is



provided by either individual endorsement or a blanket policy with the particular TNC.

In all three jurisdictions, automobile insurance is sold privately and, subject to limited

accident benefits1 (injury), third party liability coverage and tort action. First party

physical damage coverage is optional in all three jurisdictions.

26 The universal compulsory nature of Basic does not contemplate, nor does the

legislation permit, that Basic compulsory insurance coverage may become secondary,

based on temporary (or part time) change in vehicle use from a passenger vehicle to a

vehicles for hire. Basic coverage remains constant in all cases, and the only change is

in the rate charged, reflecting the use, type and territory of the vehicle. Vehicles for

Hire is a new use and it is appropriate that Basic rates are to be set for that type/use.

27 Use of an umbrella policy with a TNC or individual endorsement are not applicable nor

appropriate to replace compulsory coverage provided under the Basic program.

Providing Basic insurance to TNC’s through an umbrella policy also creates the risk

that individual operators would not incur their true incremental cost of insurance, as

they will under MPI’s proposed model that accounts for vehicle type and driver safety.

In addition, the use of an umbrella policy would not be fair and equitable to existing

vehicles for hire, such as taxis and limos.

3.3.2 Per-Kilometer Model Does Not Fit Manitoba

28 Based on a high level assessment of publicly available information, MPI identified the

following concerns with a kilometer based model:

A monthly charge per driver per kilometer is not necessarily actuarially sound

for individual driver risks.

Vehicles for Hire (VFH) drivers may not face the true incremental cost of

insurance.

1 With exception of Quebec, which has pure no-fault injury coverage



This model, if applied in the context of Manitoba’s legislative framework, would

not be fair or equitable to existing vehicles for hire (taxis and limos), and could

result in cross subsidization between Basic and the VFH pool.

29 MPI therefore determined and submits that the model proposed in this interim

application is most appropriate for Manitoba.

3.3.3 Oversight and Approval by the PUB Serves the Public

Interest

30 Alternative insurance models used in other jurisdictions would, if adopted in Manitoba,

result in coverage outside of the Basic Insurance. Premiums charged for vehicles for

hire insurance would consequently be outside the jurisdiction of the PUB. MPI submits

that it would not be in the public interest to intentionally design compulsory insurance

coverage for passenger vehicle operations that is outside of the Basic model and

outside of regulatory oversight.

3.4 Supporting the Transition

31 To facilitate the transition to this new vehicles for hire insurance framework, MPI will

waive the fee for Manitobans to change insurance use to vehicle for hire and the fee to

change time bands. MPI will pay the broker a flat fee compensation for each

transaction, in accordance with MPI’s current contractual obligations.

32 MPI will monitor this aspect to ensure that it continues to provide value and may

present alternate approaches in future GRAs.



4 ACTUARIALLY BASED RATES

4.1 Consistency and Fairness Achieved by Using Existing Basic

Rates

33 MPI established vehicles for hire rates for service in accordance with existing Basic

rates to accommodate vehicles for hire insurance use in a way that is consistent and

equitable based on prior rates experience.

34 Given that vehicles for hire have never before operated in Manitoba, there is no loss

experience. To best capture anticipated differences in loss experience and coverage,

MPI used a ‘percentage increase’ method to establish initial rates for Passenger

vehicles for hire with the rates based on the percentage difference between All

Purpose and Passenger vehicles for hire rates used in other jurisdictions. Experience-

based rate adjustments will be used to maintain rates that are equitable as experience

is gained with vehicles for hire insurance use. MPI submits that this is the best method

to determine rates when there is no existing loss experience.

35 A new vehicles for hire insurance use will be created so that claims experience can be

tracked separately from the private passenger vehicle pool. Doing so ensures that the

loss experience for vehicles for hire will not be subsidized by other vehicle classes.

4.2 Rates for Taxicab Limousines and Accessible Vehicles for Hire

36 The proposed rates for Taxicab, Limousine, and Accessible Vehicles for Hire (VFH)

classes are based on the existing rates for these classes with an adjustment to

account for the introduction of time bands, Driver Safety Rating (DSR), and

competition from Passenger VFH. Specficially:

An assumed reduction in loss exposure for Taxi VFH and Limousine VFH due to

a loss in market share



An assumed reduction is loss exposure from the introduction of DSR vehicle

premium discounts

Assumed variable exposure from the selection of time bands

37 MPI recognizes that these adjustments require varying levels of judgment; however,

MPI believes these adjustments are required to produce best estimate rates using the

available information. MPI believes the rates for these classes, on an overall basis, are

reasonably close to the eventual experienced based rates under the new VFH model.

38 Going forward, as experience data becomes available (i.e. in the 2020 GRA), the

proposed rates for Taxi, Limousine, and Accessible VFH will all be adjusted based on

actual claims experience utilizing the existing PUB approved rate making methodology.

This process ensures that at least 10% of the weight will be given to experience in the

rate relativity calculation in each GRA.

4.3 Rates for Passenger Vehicles for Hire (VFH)

39 For Passenger VFH, MPI recognizes that there is no historical claims experience for this

rating classification. It is also uncertain how many vehicle units will exist in this rating

category.

40 MPI judgmentally applied a ‘load’ to these actuarially-based rates to account for the

assumed increase in exposure from varying levels of VFH exposure. MPI believes these

adjustments are required to produce best estimate rates based on the available

information, and that it is reasonable to assume an increase in exposure over All

Purpose use for Passenger VFH because:

Intuitively a vehicle would be expected to have higher loss exposure if the

vehicle is spending more time on the road as a VFH.

A jurisdictional scan supported the notion that an additional charge of

approximately 20% over All Purpose use was determined to be reasonable in

other jurisdictions.



41 Going forward, the proposed rates for Passenger VFH will be adjusted based on actual

claims experience utilizing the existing PUB approved rate making methodology. This

means applying the approved Basic ratemaking methodology for adjusting vehicle

group relativities, which would give at least 10% weight to the Passenger VFH

experience in each rate application.

42 However, if experienced based rates are observed to be significantly different from the

initial rates, MPI may come forward with a special rating adjustment that falls outside

the approved ratemaking methodology.

4.4 Vehicles for Hire (VFH) Insurance Use Will Form a New Pool

43 The primary means of limiting cross subsidization between vehicles for hire, and the

rest of Basic, is through the creation of a new pool to track the vehicles for hire claims

experience.

44 MPI will collect the same information on VFH policy claims as it does for all other

policies. The claims experience for VFH classes will be tracked separately, through the

use of an additional field in the Enterprise Data Warehouse. These separately tracked

claims will form the ‘VFH pool’ that will be used to set actuarially sound rates for VFH

policies. Once a customer is a VFH policy holder, all claims under that policy will fall

into the VFH pool, and be isolated from the rest of Basic’s customers.

4.5 Applying the Driver Safety Rating (DSR) will Encourage Safe

Driving

45 All individual vehicles for hire customers will be eligible for a Driver Safety Rating

(“DSR”) vehicle premium discount. This means that individual customers who choose

to be passenger VFH drivers will not lose their DSR discount and DSR vehicle premium

discounts will become available to individual customers that own and insure taxis,

limousines, and other formerly ‘x-plated’ vehicles.



46 MPI submits that this is consistent with the goal of establishing fair and equitable rates

across the vehicles for hire pool. This has the added advantage of enhancing the

incentive for all vehicles for hire drivers to drive safely, move up the DSR scale, and

increase the vehicle premium discount.



5 FINANCIAL IMPACTS TO MPI

47 The proposed rates for the Vehicles for Hire classifications are intended to ‘break even’

(i.e. 0% profit), and therefore, result in no material changes to the Corporation’s

overall financial forecast. The various impacts of the VFH proposal are expected to be

offset by factors explained below, but there is no data available at this time, to

perform analysis.

5.1 Driver Safety Rating (DSR) Vehicle Premium Discounts Offset

by Improved Loss Experience

48 Under MPI’s VFH rating model, all VFH policies will be eligible for DSR vehicle premium

discounts. As explained above, this allows existing passenger vehicle policy holders to

carry their DSR Vehicle premium discounts forward to the VFH insurance use, while

opening up the vehicle premium discount to existing taxicabs, limousines and other

formerly x-plated vehicles owned and insured by individual customers.

49 The reduced vehicle premium revenue is expected to be offset by reduced loss

exposure through increased incentive to drive safer. MPI will adjust rates to reflect

actual loss experience as it develops.

5.2 Reduced Deductible for Taxis and Limousines Offset by

Improved Loss Experience

50 MPI has assumed that there will be an as yet undetermined reduction in loss exposure

for taxis and limousines as a result of competition from Passenger vehicles for hire

and stronger incentives for safe driving as a result of having access to vehicle

premium discounting; and that this reduction in exposure will offset the impact of

decreasing the deductible from $600 to $500. Further, the deductible change for taxis

and limousines is intended to create fairness and equity across all types of vehicles for

hire.



51 MPI believes that the assumption of reduced market share / exposure is reasonable

and required to produced best estimate rates. However, data to support this

assumption is not yet available. Rates will be adjusted in future applications to reflect

the actual claims experience.

5.3 Other Financial Impacts

52 MPI anticipates that some taxis and limousines may reduce their insurance costs, by

selecting fewer than four (4) time bands, which will result in decreased revenue. As

well, MPI expects that new passenger VFH policies will be sold resulting in additional

revenue. At this time, MPI is unable to forecast how many new policies might be sold,

or how many taxi and limousines will pursue narrowed windows of coverage.

53 While these policies are priced to break even, the impact to pro forma financial

statements will be in offsetting directions.

5.4 Implementation Costs

54 MPI’s Board of Directors approved the projected costs for amending the Autopac On-

Line (AOL) and Claims Administration & Reporting System (CARS) systems for new

Vehicles for Hire insurance of approximately $525,0002. The projected corporate costs

for the VFH project will be treated as expenses, will minimally impact the years

2017/18 and 2018/19, and will be captured in Insertions of Work. The estimated

Basic impact for the years 2017/18 and 2018/19 are $256,000 and $140,000

respectively.

55 The estimated Information Technology (IT) costs, which are outlined in part (b), were

not included in the Statement of Operations as filed in Compliance Filing to Board

Order 130/17.

2 CAC (MPI) 10 Figure 1



6 TNC CONCERNS ADDRESSED

56 No TNC was granted standing in this interim application, and therefore there are no

TNC submissions on the evidentiary record in this proceeding.

57 The legislation does not permit for basic compulsory coverage to be suspended based

on a vehicle’s particular use at a particular time. The non-evidentiary submission of

UBER raised concerns in terms of needing to rely on their operators to be properly

insured. MPI understands this concern, and has offered to provide contingent and

excess coverage for rideshare operations through a special risk commercial umbrella

policy. This will ensure that the TNC providers are never put at risk from a financial or

reputational liability perspective if one of their operators is in a collision while

providing for-hire services outside of the self-declared time bands or by failing to carry

the minimum third party liability (TPL) insurance coverage limit that may be required

by the TNC provider. However, this approach will respond to losses only on a

contingent basis, and not primary in cases of losses while operating on the platform.

58 This is MPI’s way of addressing the concerns of UBER without violating the principles,

legislative and regulatory frameworks established for the Basic compulsory insurance

program in Manitoba.

Manitoba Branch of the Consumers' Association of Canada

Closing Submissions

Manitoba Public Insurance

Vehicles for Hire 2018 Interim Application

January 9, 2018

1

Introduction On February 28, 2018, The Local Vehicles for Hire Act1 (“Act”) will come into force in the Province of Manitoba. The Act repeals The Taxicab Act and dissolves the Taxicab Board. The Act enables municipalities to make by-laws regulating the vehicle-for-hire industry, including taxis, limousines and vehicles hired through an online application, a digital network or platform or a website.

The Act provides that “Winnipeg must make a by-law regulating the vehicle-for-hire industry inthe city.” The Act also states that information must be collected and shared between ManitobaPublic Insurance (“MPI”), the Registrar of Motor Vehicles and municipalities with vehicle-for-hire by-laws. The Act allows for municipal by-laws to establish a Vehicles for Hire Commission.

In the City of Winnipeg, the City of Winnipeg Vehicles for Hire By-law, By-Law 129/2017 was passed by Council on December 13, 2017. The By-law regulates dispatchers of vehicles for hire, vehicles for hire and drivers of vehicles for hire. The By-law also divides vehicles for hire into two categories: taxis, including standard taxis and accessible taxis, and Personal Transportation Provides (PTP) vehicles, consisting of standard PTP vehicles, accessible PTP vehicles, and limousines.2

On December 15, 2017, MPI filed an Application for Interim 2018/19 Vehicles for Hire Premium Rates with the Public Utilities Board (“PUB”).

On December 22, the Manitoba Branch of the Consumers' Association of Canada (“CAC Manitoba”) was approved as an Intervener in the Application for Interim 2018/19 Vehicles for Hire Premium Rates.

CAC Manitoba Position on MPI's Interim ApplicationIn the context of the Act coming into effect on February 28, 2018 and the resulting short timeframe under which the PUB must approve rates for vehicles for hire, CAC Manitoba recommends that MPI's Application for Interim 2018/19 Vehicles for Hire Premium Rates be approved.

In the interim, until a final determination is made by the PUB following a full hearing of the 2019 General Rate Application (“GRA”), CAC Manitoba believes that MPI's approach is reasonable. MPI's proposal provides for sufficient flexibility to refund or charge additional premiums, if necessary.

The Crown Corporations Governance and Accountability Act provides that all new rates for service proposed by MPI must be reviewed and approved by the Public Utilities Board.3 In thecase of MPI, rates for service means “rate bases and premiums charged with respect to

1 Bill 30, 2nd Session, 41st Legislature, Manitoba, 66 Elizabeth II, 2017.2 CAC (MPI) 1, Attachment A.3 Crown Corporations Governance and Accountability Act, C.C.S.M. c. C336, s 25(1).

2

compulsory driver and vehicle insurance provided by that corporation.”4 The Public Utilities Board Act applies to a review relating to rates for services.5 The factors to be taken into consideration by the Public Utilities Board in setting rates are listed at section 25(4) and 25(5) of the Crown Corporations Governance and Accountability Act.6

Under section 47(2) of the Public Utilities Board Act, the Board “may, instead of making an order final in the first instance, make an interim order and reserve further directions, either for an adjourned hearing of the matter, or for further application.”7

In this Application, MPI has developed and evaluated its rating model for vehicles for hire according to the following criteria:

Is the rating model fair and equitable? Is the rating model actuarially-based? Is the rating model flexible enough to accommodate different regulatory frameworks

throughout the province as a result of Bill 30?8

Based on its review of MPI's evidence, CAC Manitoba is satisfied that the criteria outlined above are met, in the context of this interim application.

CAC Manitoba has also reviewed the written presentations submitted by UBER Canada to thePUB. CAC Manitoba notes page 17 of MPI's closing submissions, which attempts to address the concerns raised by UBER by offering “to provide contingent and excess coverage for rideshare operations through a special risk commercial umbrella policy.” Given Manitoba's legislative requirement for all drivers in Manitoba to be covered by Basic insurance, CAC Manitoba is satisfied, in the interim, that MPI's proposal is a reasonable attempt to address UBER's concerns.

4 Ibid, s 25(2)(b).5 Ibid, s 25(3). 6 Factors to be considered, hearings

25(4) In reaching a decision pursuant to this Part, The Public Utilities Board may(a) take into consideration(i) the amount required to provide sufficient funds to cover operating, maintenance and administration expenses of the corporation,(ii) interest and expenses on debt incurred for the purposes of the corporation by the government,(iii) interest on debt incurred by the corporation,(iv) reserves for replacement, renewal and obsolescence of works of the corporation,(v) any other reserves that are necessary for the maintenance, operation, and replacement of works of the corporation,(vi) liabilities of the corporation for pension benefits and other employee benefit programs,(vii) any other payments that are required to be made out of the revenue of the corporation,(viii) any compelling policy considerations that the board considers relevant to the matter, and(ix) any other factors that the Board considers relevant to the matter; and(b) hear submissions from any persons or groups or classes of persons or groups who, in the opinion of the Board, have an interest in the matter.MPIC25(5) In the case of a review pursuant to this Part of rates for services of the Manitoba Public Insurance Corporation,The Public Utilities Board may take into consideration, in addition to factors described in subsection (4), all elements of insurance coverage affecting insurance rates.

7 The Public Utilities Board Act, C.C.S.M. c. P280, s 47(2).8 December 15, 2017 Application, p. 7.

3

Issues for Examination in 2019 GRAWhile CAC Manitoba recommends that MPI's application be approved in the interim, given the short timeframe until the Act comes into effect, there are number of issue which it recommends should be examined in further detail in the 2019 GRA before final approval is granted to the insurance rating model for vehicles for hire.

Final Approval in 2019 GRA

CAC Manitoba agrees with MPI's proposal that the Corporation submit an application for 2017/18 and 2018/19 rates for service, as well as 2019/20 vehicles for hire Rates for Service at the 2019 GRA. This will allow Interveners and the public to adequately test the evidentiary basis of MPI's rating model for vehicles for hire within a full hearing setting.

CAC Manitoba is satisfied that MPI's proposal would allow for any variance between interim and final approved vehicle for hire rates to be rebated or collected on a customer by customerbasis. MPI's proposal also appears to be consistent with section 27 of the Crown Corporations Governance and Accountability Act, which allows for compensation or refunds where a final order differs from an interim order.9

Taxicab versus Vehicles for Hire Insurance Rates

Two taxi companies, Unicity Taxi Ltd. And Duffy's Taxi (1996) Ltd., have provided written comments in this proceeding, which raise concerns that taxicabs will pay rates much higher than passenger vehicles for hire for the same number of time bands selected for insurance purposes.

While CAC Manitoba recommends that MPI's proposal should be approved in the interim, the issue of rates for taxicab rates compared to passenger vehicles for hire rates should be examined in greater detail in the 2019 GRA. Specifically, the issue of whether, for insurance purposes, the taxicab class should disappear and fall within one of the other definitions of vehicles for hire should be examined.

Interplay Between Legislation and Insurance Rating Model

CAC Manitoba recommends that MPI should be required to provide a detailed study of the interplay between The Local Vehicles for Hire Act, The City of Winnipeg By-law No. 129/2017 (and any other municipal regulations that are enacted before the 2019 GRA) and the rating model proposed by MPI for vehicles for hire to be tested in the 2019 GRA.

Such a study would allow the PUB and Interveners to test whether all vehicles for hire and drivers are adequately covered and protected by the insurance rating model within the meaning of the Act and the Regulations.

9 Compensation or refunds27 When a new rate for services or an increased rate is allowed pursuant to an interim order and a final order does not allow any changes or allows changes other than those permitted in the interim order, The Public Utilities Board may make any order to compensate for or to refund any excess amounts collected by the corporation that it considers necessary and appropriate in the circumstances.

4

Financial Impact of the Vehicles for Hire Rating Model on MPI

CAC Manitoba recommends that MPI should be required to provide information on the financial impact of the vehicles for hire rating model changes on the Corporation at the 2019 GRA. Financial impacts should include, but not be limited to:

Overall financial impact of the changes relating to the vehicles for hire model on MPI's Pro-Forma Financials;

Financial premium impact of the proposed deductible decrease from $600 to $500 for taxicabs, limousines and accessible vehicles; and

Impacts on broker commissions and Service Fees regarding transactions to change time bands for vehicles for hire.

Driver Safety Rating Premium Impacts

CAC Manitoba recommends that MPI should be required to provide information regarding Driver Safety Rating (“DSR”) premium discount impacts, if any, resulting from the vehicles for hire rating model implementation at the 2019 GRA. This should include, but not be limited to, any impact on driver behaviour and claims, as well as any losses to DSR premium revenues.

Information Technology Costs

CAC Manitoba recommends that MPI should be required to provide a detailed breakdown of the Information Technology costs related to upgrading or modifying AOL and CARS to manage the vehicles for hire transactions, for testing at the 2019 GRA.

Forecasting of Claims Incurred

CAC Manitoba recommends that MPI's forecasting of claims incurred for vehicles for hire, including additional 'use' codes and time bands, be further examined at the 2019 GRA.

Road Safety and Loss Prevention

CAC Manitoba recommends that the implications of the changing marketplace of vehicles for hire on customer access to reliable, safe and high quality transportation services should be studied.

Road safety is an issue that is routinely examined during MPI rate applications. As it relates toquality of service, the Manitoba Court of Appeal has previously found that the Public Utilities Board has jurisdiction to consider “the nature, quality and adequacy of service before authorizing or approving of increases in rates or tolls.”10

The safety and protection of both drivers and clients of vehicles for hire is a priority issue for CAC Manitoba. A further examination of the impacts of the new vehicles for hire scheme on road safety and loss prevention should be conducted in the 2019 GRA or at a technical

10 Brandon Transit Consumers Assn In v Brandon (City), 34 Man R (2d) 36, 18 DLR (4th) 459, at paras 10, 24.

5

conference prior to the GRA proceeding.

In the 2019 GRA, and in subsequent GRAs, CAC Manitoba intends to examine whether safety and training standards are sufficient and adequate for all vehicles for hire, including taxicabs, limousines, accessible vehicles and any ridesharing or Transportation Network Companies (“TNC”) operating in Manitoba.

CAC Manitoba also intends to examine the fairness of safety and training requirements for drivers of vehicles for hire. Safety and training requirements for all vehicles for hire, including taxicabs, limousines, accessible vehicles and ridesharing of TNC vehicles should be equivalent and fair for drivers.

As a specific issue, training relating to transportation of persons with disabilities should be mandatory for all drivers of vehicles for hire. Currently, taxicab drivers must attend mandatory disability training offered by the Independent Living Resource Centre. Under the new vehiclesfor hire framework, disability awareness training should be mandatory for all drivers and the possibility of additional training, which would provide an incentive through a credit to insurance payments, should be explored.

An issue raised by one disability group with which CAC Manitoba consulted is the definition of“accessible” vehicle in the Winnipeg By-Law. In the By-law, “accessible” in respect of a vehicle means:

(a) constructed and equipped to permit the loading, transportation and off-loading of individuals who use a wheelchair, or similar device which can accommodate a seated individual, and who cannot self-transfer; and

(b) driven by an individual who is physically capable of providing, and trained to provide in compliance with the requirements of this By-law, transportation services to individuals who use a wheelchair, or similar device which can accommodate a seated individual, and who cannot self-transfer; (emphasis added)

A concern exists that the requirement that the driver be “physically capable” of providing assistance to clients could be prohibitive to persons with disabilities who own an accessible vehicle. Given that fully accessible vehicles are often owned and driven by persons with disabilities, this requirement could lead to a deficit of accessible vehicles for hire eligible to provide services.

While CAC Manitoba acknowledges that MPI is not responsible for making amendments to the City of Winnipeg By-law, it recommends that the Corporation should consult with disability groups on issues relating to the vehicles for hire scheme. In some cases, issues could be rectified through changes to the insurance scheme without changes to the by-law. In other cases, MPI may have to change its insurance scheme for vehicles for hire in response to potential future changes to the by-law.

CAC Manitoba recommends that issues relating to persons with disabilities should be studied

6

prior to and/or during the 2019 GRA.

One of the important aspects of making a final determination regarding the vehicles for hire insurance scheme would be to access research on road safety and quality of service from a customer perspective in jurisdictions where ridesharing services exist. For example, CAC Manitoba is concerned that the marketplace for accessible vehicles could be limited significantly for some customers in the new vehicles for hire scheme if ridesharing drivers are able to pick and choose which customers they decide to accept as clients.

CAC Manitoba acknowledges that some of the issues outlined in this section may overlap with responsibilities of other stakeholders in the province. CAC Manitoba recommends that a representative from the City of Winnipeg (and any other relevant stakeholder) be invited to attend the 2019 MPI GRA and/or any technical conference on road safety to assist in the Board's and other parties' understanding of the shared responsibilities for safety and quality ofservice of vehicles for hire.

Ridesharing and TNCs

CAC Manitoba recommends that MPI meet with ridesharing companies and TNCs who are considering expanding their services to Manitoba to explain MPI products and the legislative environment in this province. This may assist ridesharing companies and TNCs in making informed decisions regarding whether, how and when to expand their products to Manitoba.

Monitoring of Industry Standards and Best Practices

In its application, MPI states:

Transportation Network Companies (TNCs) are a relatively new business model in North America, and in Canada in particular. Based on MPI’s analysis of TNC by-laws and insurance rates in Canada, no industry standard has developed on insurance rating models within or across jurisdictions that currently permit operation of TNCs. Further, coverage and pricing varies by insurance company within and across jurisdictions.11

CAC Manitoba recommends that MPI should monitor best practices and standards of the TNC industry and present the results of its monitoring in the 2019 GRA and subsequent annual rate applications.

Stakeholder Engagement

CAC Manitoba recommends that MPI be ordered to submit a report on stakeholder engagement it has conducted and will be conducting prior to the 2019 GRA relating to vehicles for hire, including any engagement with the City of Winnipeg, other municipalities, consumer groups and disability groups. Engagement with stakeholders would assist in ensuring that all stakeholders have an opportunity to express their concerns and that the vehicles for hire rating model be adjusted, if needed.

11 December 15, 2017 Application, p. 6.

7

Engagement should include ample opportunity for meaningful stakeholder input by providing information to participants in advance and opportunities for retaining experts, where applicable. MPI's report on engagement should include how stakeholder feedback was taken into consideration in the decision-making process and if feedback was not incorporated, an explanation should be provided regarding why not.

ConclusionGiven the short timeframe until February 28, 2018 when The Local Vehicles for Hire Act will come into effect, CAC Manitoba recommends that MPI's application for vehicles for hire be approved by the PUB on an interim basis.

CAC Manitoba recommends that MPI include an application for 2017/18 and 2018/19 rates for service, as well as 2019/20 vehicles for hire Rates for Service to be fully tested during the 2019 GRA.

CAC Manitoba intends to examine a number of issues in further detail at the 2019 GRA. It recommends that MPI be ordered to provide further information regarding:

the interplay between the Act, the Regulations and the insurance rating model;

rates for taxicabs versus passenger vehicles for hire;

the financial impact of the vehicles for hire rating model on the Corporation;

DSR premium discount impacts, if any;

information technology costs;

forecasting of claims incurred;

road safety and loss prevention, especially relating to safety and training standards and requirements for vehicles for hire operating in Manitoba;

monitoring of industry standards and best practices; and

stakeholder engagement.

8


VEHICLE FOR HIRE 2018 INTERIM APPLICATION

INTERESTED PARTIES

Uber Canada Inc

Supplemental Submission

Taxi Cab Association

UBER CANADA, INC. SUBMISSIONS TO THE MANITOBA PUBLIC UTILITIES BOARD

RE: Manitoba Public Insurance Corporation - 2018 Interim Vehicles for Hire Rate Application

Introduction Uber Canada Inc. and its affiliates ("Uber") leverage a proprietary digital platform to connect ridesharing drivers with persons requesting transportation services. Should Uber elect to enter the Manitoba market, the drivers using Uber's app would constitute the largest group of purchasers for the Manitoba Public Insurance Corporation ("MPI") proposed Vehicle for Hire insurance product associated with ridesharing. While Uber appreciates the effort that MPI has devoted to the development of its proposed ridesharing insurance product, Uber is respectfully of the view that the structure of the insurance product, including its rate bands, does not meet the insurance needs of rideshare drivers using the Uber app. The Proposed Insurance Product As outlined in MPI’s filing, MPI is proposing a rideshare insurance product that would function as an “add on” to drivers' personal basic coverage. Drivers would purchase add on ridesharing coverage in time bands, depending on which times of the day a driver wants to drive in. This product structure differs greatly from insurance models in place across North America (including Ontario, Alberta and Quebec) and deviates in several important ways from the type of insurance that Uber has found to be effective in North America. Effective Ridesharing Insurance In order to be effective, ridesharing insurance needs to have certain characteristics. Effective Rideshare Insurance:

● Facilitates compliance ○ Allows rideshare company to purchase commercial insurance on behalf of drivers

so that the rideshare company and regulator know that consistent coverage is in place and rideshare drivers, a majority of whom drive only 5-10 hours a week for durations of less than a year, are not individually burdened by cost of commercial rideshare insurance

● Recognizes that many drivers rideshare on a part-time basis

○ Traditional taxi insurance is based on very heavy usage - i.e. one cab driven in shifts by multiple taxi drivers which can result often in 24/7 use

○ Most rideshare drivers in Canadian cities engage in commercial activity for only 5-10 hours per week

○ Effective rideshare insurance bases premium on the number of KMs actually driven

● Minimizes friction for drivers since many drivers are trying ridesharing for the first time

○ Avoids requiring drivers to make changes to their personal insurance

● Minimizes workload for insurer ○ Avoids a situation where a backlog occurs as a result of a large numbers of

rideshare drivers approaching broker/MPI to change to a different insurance class

Assessing the Proposed Product Using the Elements of Effective Ridesharing Insurance

● Facilitates compliance ○ The proposed product will make it very difficult for ridesharing companies to

assess compliance with insurance requirements. Drivers can, and may have to, change their personal policies on a daily or weekly basis depending on what times of the day they want to be covered to drive, which can present potential issues with compliance.

● Recognizes that many drivers rideshare on a part-time basis

○ The proposed product does not accommodate part-time drivers who want to drive at different times of the day for a very limited number of hours. Those drivers would be forced to purchase every band at a cost that will prohibit drivers from trying ridesharing.

● Minimizes friction for drivers since many drivers are trying ridesharing for the first time

○ The proposed product will create friction for drivers by requiring drivers to make changes to their personal insurance.

○ The time band element of the product would require drivers to potentially make changes multiple times per month if drivers want to drive at different times.

○ Drivers will need to track their driving hours and potentially refrain from driving during times of high demand due to their limited insurance coverage if they have only purchased certain bands.

● Minimizes workload for insurer

○ MPI/brokers will be required to process multiple requests for changes in personal automobile insurance, both when drivers first begin ridesharing and when drivers wish to change the time of day when they have insurance coverage.

The North American Ridesharing Insurance Model

Throughout North America, regulators have permitted ridesharing companies to purchase commercial, blanket insurance covering drivers while they are engaging in ridesharing activity. Uber has found that this is the insurance model that best protects drivers, passengers, pedestrians and the public. Under this model:

○ The driver’s personal policy covers personal use ○ The blanket policy covers rideshare use ○ The blanket policy is Uber purchased with robust limits and coverage ○ The blanket policy is priced on KMs driven - KMs are tracked by Uber systems

This model used in the United State and has also been approved for use in Ontario, Alberta and Quebec. A schematic of Alberta program is below - rideshare coverage is placed with a private insurer. For Manitoba, it would be MPI.

Product Comparison For ease of reference, the following chart outlines the features of the proposed MPI product versus the characteristics of blanket insurance:

Facilitates Part Time Activity

Minimizes Friction for Drivers

Minimizes Friction for Insurers

Facilitates Compliance

MPI Proposed Insurance

North America Wide Blanket Insurance

Conclusion Based on the deficiencies in the MPI proposed product versus the type of insurance that is available to ridesharing companies in cities across North America, Uber will, unfortunately, be unable to consider expansion of services to Winnipeg on March 1, 2018. In the absence of a commercial, blanket policy designed to cover all drivers during ridesharing activity, Uber will find it difficult from a risk and compliance perspective to do business in Manitoba. We feel that this will be detrimental to the citizens of Manitoba who are seeking efficient, safe transportation. Thank you for considering our submissions.

UBER CANADA, INC. SUPPLEMENTAL SUBMISSIONS TO THE MANITOBA PUBLIC UTILITIES BOARD RE: Manitoba Public Insurance Corporation - 2018 Interim Vehicles for Hire Rate

Application

January 5, 2018 Having had the benefit of reviewing the Information Requests and Responses filed in this proceeding on January 4, 2018, Uber Canada, Inc. (“Uber”) wishes to make the following supplemental submissions to clarify some information contained in the Responses to the Information Requests. Legislative Ability to Issue a Blanket Policy to a Ridesharing Company There do not appear to be any provisions in the The Manitoba Public Insurance Corporation Act (the “Act”) or the Automobile Insurance Coverage Regulations that would preclude the creation of a commercial, blanket policy as outlined in Uber’s previous submission. In fact, there are sections of the Act that facilitate the creation of new insurance products. The following sections of the Act are relevant in this regard:

31(1) The Lieutenant Governor in Council may make regulations authorizing the corporation to engage in and carry on any class of insurance or any insurance plan, set out in section 6, upon such terms as the regulations under this Act may provide and he may, by regulation, provide that certain provisions of this Act or the regulations do not apply to a particular class of insurance or insurance plan carried on pursuant to this section.

33(1) Subject to subsection (1.1), for the purpose of carrying out the provisions of this Act according to their intent, the Lieutenant Governor in Council may make such regulations as are ancillary thereto and not inconsistent therewith; and every regulation shall be deemed to be part of this Act and has the force of law; and, without restricting the generality of the foregoing, the Lieutenant Governor in Council may make regulations

(a) establishing, amending, and revoking such plans of automobile insurance and plans of universal compulsory automobile insurance for the insurance within Manitoba of such losses, damages, injuries, or deaths arising out of the perils and risks attendant upon or relating to the use, operation, or ownership of motor vehicles and trailers as the Lieutenant Governor in Council may designate;

http://web2.gov.mb.ca/laws/statutes/ccsm/p215f.php#31

http://web2.gov.mb.ca/laws/statutes/ccsm/p215f.php#33

33(3) The Lieutenant Governor in Council may, by regulation, exclude or exempt any non-residents or class of non-residents and any motor vehicle or trailer or class thereof from the operation of this Act or the regulations, or any provision of the Act or the regulations, or any plan or part of a plan upon such terms and conditions as he may prescribe. Assessing Risk Experience of Ridesharing Drivers A blanket insurance product provides a significantly better opportunity to assess the risk experience of rideshare drivers. The blanket policies in place across North America provide coverage only during ridesharing activity. With the proposed MPI product, a driver will not necessarily be engaged in ridesharing during the time bands that the driver has selected to have the potential to rideshare within. An accident that occurs within one of those timebands is not necessarily connected, in any way, to ridesharing. As a result, it will be very difficult to extrapolate meaningful risk data. Compliance The City of Winnipeg By-Law provides that a ridesharing company cannot connect a ridesharing driver with a ridesharing passenger on a day or at a time when the ridesharing driver does not have ridesharing insurance. The individual nature of the proposed MPI product and the timeband elements of it will render it impossible for ridesharing companies to meet the requirement of the City of Winnipeg By-Law without checking a driver’s insurance at the time of every matching with a passenger. Unfortunately, that is not feasible.

http://web2.gov.mb.ca/laws/statutes/ccsm/p215f.php#33(3)

ln the affidavit of 4'11~ :jc1-1~1]0j'l sworn before me · december 15, 2017 2018 interim...

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